QANTAS boss Alan Joyce has cited an "uncertain global context" as the reason for the airlines' decision to surprisingly cancel a US$8.5 billion new investment in 35 new airliners.
While announcing a larger than expected loss for the carrier in Sydney this morning, Mr Joyce blamed "record" high fuel bills and transformation costs as factors influencing the airline's statutory loss after tax of $244 million.
It is the first time since Qantas went private in 1995 that the airline posted a net loss.
Despite the announcement, the company's share price was was two cents higher at $1.19 when the ASX opened.
After posting the result, CEO Alan Joyce said Qantas would be canceling its order for a new fleet of 35 Boeing 787 aircraft. The aircraft are worth AU$8.5 billion at list prices, Joyce said.
"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.
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