Qantas posts pre tax loss of $646m for 12 months ended June 30th, 2014

Qantas reported an underlying loss before tax of $646m and a statutory loss after tax of $2.8bn for the 12 months ended June 30th, 2014. The Underlying PBT result was driven by the cumulative impact of two years of industry capacity growth ahead of demand, leading to a $566m decline in FY14 revenue, and by record Australian dollar fuel costs of $4.5bn – up $253m from FY13. In response, Qantas is driving an earnings recovery and de-leveraging the Group’s balance sheet to shape a profitable future and build long-term shareholder value. The $2bn accelerated Qantas Transformation program announced in February is permanently reducing costs and laying the foundations for sustainable growth in earnings. Transformation benefits totalled $440m in FY14, including $204m of second-half benefits from the accelerated Qantas Transformation program. A further $900m of accelerated transformation projects are in the implementation phase, with more than $600m of benefits from these projects to be realised in FY15.