Qantas International today announced that it will cancel orders for 35 B787-9 Boeing Dreamliners as part of its five-year turnaround plan, but will retain and bring forward 50 B787-9 options by two years to 2016, thus delaying the first Dreamliner delivery by two years from 2014. Qantas also announced a full-year loss after tax of AUD244 million (€204m).
Deliveries of 15 B787-8s to Jetstar will continue as planned, with the first aircraft to arrive in the second half of 2013. This will enable the transfer of Airbus A330 aircraft from Jetstar to Qantas Domestic, and the eventual retirement of the airine’s B767 fleet.
Chief Executive Alan Joyce said: “In the context of returning Qantas International to profit, this is a prudent decision. The B787-9 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago. It is vital that we allocate capital carefully across all parts of the Group.
“The Qantas Group’s full year results are in line with the guidance we provided to the market. We delivered an underlying profit before tax of $95 million, which represents a statutory loss after tax of $244 million. This result reflects three things: a record fuel bill, up $645 million to $4.3 billion, 18% higher than the previous year ; the costs incurred by the prolonged industrial dispute last year of $194 million; and transformation costs of $376 million (approximately half of these non-cash), as we continue to address our legacy cost base and turn around our Qantas International business.”
“Qantas has always maintained flexibility in its fleet plan and made changes when required. We have now substantially completed our fleet renewal programme for the Qantas Group, with 114 new aircraft delivered over the past four years. Our average scheduled passenger fleet age is 8.3 years, the lowest since privatisation and highly competitive by international standards.
“We have 12 A380s in service across our long-haul network and the reconfiguration of nine B747s will be complete by late 2012. Boeing 737-800s will continue to enter the Qantas Domestic fleet as part of the Group’s existing fleet plan, while Airbus A330s will transfer from Jetstar as B787s are delivered. Jetstar’s domestic and pan-Asian fleet requirements will be met over the long-term by our existing A320 order book and the arrival of B787-8s.”