Qantas has cancelled its firm orders for 35 Boeing 787-9 aircraft, but executives say that by moving forward options it can still add -9s from 2016 if it meets its target for turning around its international operation.
The cancellation has no effect on the 15 orders for the -8 version that Qantas is due to take delivery of beginning in 2013, which are earmarked for its Jetstar subsidiary. The 35 -9s were to begin arriving in the 2014/2015 fiscal year, so even though the options have been moved forward by two years, it would effectively face a two-year delay for its first -9s.
Qantas also announced its results for the 2011/2012 fiscal year. It reported an underlying profit before tax of A$95 million (US$99.9 million), although it had a statutory loss after tax of A$244 million. This was in line with guidance issued in June, and considerably weaker than the previous year’s results. Contributing factors were an A$645 million increase in fuel prices, and industrial action and a resulting fleet grounding last year that cost A$194 million. One-off restructuring costs totaled A$398 million.
The result was also dragged down by the Qantas international operation, which saw a loss of A$450 million before interest and tax (EBIT). In contrast, the other units were profitable. The Qantas mainline operation as a whole reported an EBIT loss of A$21 million, while Jetstar had an EBIT profit of A$203 million