Commercial Finance Specialists

Beleaguered Australian airline Qantas has blamed a $194 million (c. £124 million) slump in first-half profits for 2011-2012 on the cost of fuel and industrial action.

$70 million (c. £44.75 million) was lost owing to the impact of the grounding of the global fleet. $68 million (c. £43.5 million) was lost from cancellations and delays.

CEO of Qantas, Alan Joyce, has said that high fuel prices and unstable exchange rates have made it difficult to predict the outlook for the second half of the financial year. He did stress, however, that since the strikes were ended by the judgement of an arbitration court, passengers were returning to the airline, and trusted in the brand to offer the expected high levels of service.

The airline is also set to shelve plans to establish a premium airline in Singapore, but it may yet continue with a prospective partnership with Malaysia Airlines, subject to acceptance from the Competition Commissions of both countries.

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