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Qantas loss predicted to now exceed $1B

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markis10

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Following a $250 million loss in the first half of the year the current analyst consensus is for a loss of around $700 million on an underlying basis. On top of this they are expecting about $200 million-$400 million of one-off losses - most accounted for by the cost of making 2200 jobs redundant by June 30, 2014. This would boost the airline's statutory loss to more than $1 billion. Some analysts have this number as high as $1.2 billion.
But over the past week the chatter that additional write-downs will be made - particularly on aircraft - has led to a view that even $1 billion could be well shy of the year-end underlying loss and that $1.5 billion could be closer to the mark. Qantas wouldn't be drawn on the speculation.




Read more: Qantas loss could break billion barrier
 

Melburnian1

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As things stand at present, it is difficult to see either major airline group (QF or VA) ever making a profit again.

That may seem unduly pessimistic, but more and more air travel is regarded as a (discretionary) commodity by the great bulk of patrons, so the airlines' once substantial pricing power has slipped at least a little.

Time will of course tell, but in QF's case depreciation of its older aircraft must be extracting a heavy financial toll, even if it's a 'npn cash' item if I recall in the beancounters' lexicon.
 

amaroo

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Threads like this make be :D that over the past few months I've reduced my exposure by around 1.8M QFFP.
 

cmon0005

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Obviously I'm not an expert, but I highly doubt the number will be above 1bil.
For a couple reasons (again I'm no expert so please don't flame me):
1.) If it was likely known within the company that the loss would potentially be that high, surely by now they would have to provide guidance to the market?
2.) Other than fuel (and other one-off expenses related to restructure) what could possibly drive up the losses so much? after all they've cut many routes, cut staff, simplified (tm) FF offerings.etc.
 

markis10

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Obviously I'm not an expert, but I highly doubt the number will be above 1bil.
For a couple reasons (again I'm no expert so please don't flame me):
1.) If it was likely known within the company that the loss would potentially be that high, surely by now they would have to provide guidance to the market?
2.) Other than fuel (and other one-off expenses related to restructure) what could possibly drive up the losses so much? after all they've cut many routes, cut staff, simplified (tm) FF offerings.etc.

I think we will know soon, as for guidance needing to be provided I believe the rules have a lot of play in them.
 

JohnK

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2.) Other than fuel (and other one-off expenses related to restructure) what could possibly drive up the losses so much? after all they've cut many routes, cut staff, simplified (tm) FF offerings.etc.

Making senior management positions redundant?
 
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Ari Gold

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How much of the anticipated loss can be attributed to FAILED JQ ventures in <Insert country name here>!
 

whatmeworry

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So is Qantas broke or ...

 
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