Australian airline Qantas has reported a $245 million annual loss, that is £162 million, loss in profits, as the airline has been hurt by increasingly rapid rising fuel prices, a series of damaging strikes that temporarily grounded its fleet and its struggling international division.
The Australian flagship carrier's reputation has been greatly dented by recent action and accidents, including those afflicting its new airbus A380 aircraft.
This new loss is the very first time the company has reported such an event since it became a private company back in 1995/6
After posting the result, chief executive Alan Joyce said Qantas would be cancelling its order for a new fleet of 35 Boeing 787-9 aircraft, worth 8.5 billion US dollars (£5.3 billion) at list prices. It is still planning to buy 15 787-8s.
"The B787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago," Mr Joyce said in a statement. "It is vital that we allocate capital carefully across all parts of the Group."
Qantas blamed the annual loss on its 4.3 billion Australian dollars (£2.8 billion) fuel bill - up 18% from last year - an industrial dispute that the airline said cost 194 million Australian dollars (£128 million) and its international business, which lost 450 million Australian dollars (£297 million) and is struggling amid increased competition.
"Our biggest challenge is Qantas International, but its transformation is on track," Mr Joyce told reporters. "Our goal is to return it to profit and ensure it remains Australia's iconic flagship carrier."
Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was 95 million Australian dollars (£62 million), a steep drop from 552 million Australian dollars (£365 million) a year ago.
