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Qantas reports €205m annual loss
Australian airline Qantas has reported its first annual loss since it was privatised in 1995, amid high fuel costs and growing losses at its international operations.
Orders for 35 Boeing Dreamliner jets have been cancelled as a result of dwindling international demand
The firm made a net loss of 244m Australian dollars ($256m; €205) for the year to 30 June.
This compares with a net profit of A$250m in the previous year.
Qantas also cancelled orders for 35 Boeing Dreamliner jets worth $8.5bn due to "lower growth requirements".
Alan Joyce, chief executive of Qantas, said growth was expected to be slow due to the uncertain global economic environment.
The biggest impact on Qantas' earnings came from the growing losses at its international operations, which reported a net loss of A$450m.
The airline's international business has been hurt by slowing demand from its key markets.
Qantas has also lost passengers to rival carriers, reducing its share of the international market.
The firm has already taken measures to try to turn around the fortunes of the unit, including cancelling services on loss-making routes and streamlining some of its maintenance operations.
The restructuring plan is also expected to result in 2,800 job cuts, helping to reduce costs further.
The firm said that, when fully implemented, the measures were likely to result in savings of as much as A$300m per year and a turnaround plan aims at improvement in 2012-13.
