Reuters: Global Markets: Qantas flags profit to tumble on international losses

Reuters: Global Markets Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Qantas flags profit to tumble on international losses Jun 5th 2012, 01:14 Tweet Share this Email Print Related News Golden age or bubble? Plane-makers walk the line Wed, May 23 2012 Qantas to separate international business in turnaround plan Tue, May 22 2012 Analysis & Opinion Tax Foundation: Kansas tax cut plays favorites Essential reading: Union, liberal coalition pushes Obama tax plan, and more Related Topics Hot Stocks » Asian Markets » The tail of a Qantas 747 is reflected in a window at Kingsford Smith international airport in Sydney May 22, 2012. Credit: Reuters/Daniel Munoz SYDNEY | Mon Jun 4, 2012 9:14pm EDT SYDNEY (Reuters) - Australia's Qantas Airways (QAN.AX) warned on Tuesday its underlying profit before tax will fall by up to 90 percent due to deeper losses at its international operations, weak travel demand and soaring fuel costs, sending its shares to a record low. Qantas, which plans to split its profitable domestic and loss-making international operations from next month, said underlying profit before tax for 2011/12 was seen at A$50 million ($48.6 million) to A$100 million. That compared with A$552 million a year ago and a A$285 million average expected by analysts. The warning sent shares of Qantas down by as much as 18.3 percent. By 8:13 EDT, the shares had trimmed losses to trade 12.7 percent lower at A$1.245. Qantas' warning underlines the global aviation sector's struggles as high oil prices and sagging demand due to the European economic crisis take their toll. The International Air Transport Association has downgraded its forecast for airline profits in 2012 to $3 billion from $3.5 billion, and has said that a further economic downturn could see a net loss for the sector. Qantas said its international business was seen posting a loss in earnings before interest and tax (EBIT) of more than A$450 million in 2011/12, compared with a A$216 million loss a year ago. The domestic operations EBIT was seen at over A$600 million. "We are attacking costs and allocating aircraft and capital efficiently. Over A$300 million in annual benefits have been identified from the changes we are making," said Chief Executive Alan Joyce, who aims to return the international business to profit by 2014. The airline said with a cash balance of more than A$3 billion, an undrawn standby facility of A$300 million, and the flexibility to cut or raise capital investment it remains in a strong funding position. (Reporting by Narayanan Somasundaram; Editing by Richard Pullin) (This story has been corrected to fic spelling in headline) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints Comments (0) This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions