Qantas in Crisis – Announces $2.84 billion loss!
Qantas has announced a staggering $2.84 billion dollar this morning, shocking market analysts who were anticipating losses of around $800 million.
It is the worst result in the airline’s history.
Qantas CEO Alan Joyce called the result “confronting.”
“There is no doubt today’s numbers are confronting, but they represent the year that is past,” Mr Joyce said.
“We have now come through the worst. With our accelerated Qantas Transformation program we are already emerging as a leaner, more focused and more sustainable Qantas Group.”
However, the positive spin is something that Joyce has spruced before.
At the Qantas AGM in 2013, Joyce announced that Qantas had a “clear strategy” that was “delivering results”, yet just seven weeks later, seemingly out of the blue, announced an expected loss of up to $300 million.
In the months before Joyce took over as Qantas boss in November 2008, Qantas posted a record $969 million profit.
Joyce earns an annual salary package of $5 million.
Qantas is already cutting 5,000 jobs over the next three years to try to rein in costs. Today’s results will likely increase these numbers.