Struggling Australian airline Qantas posted a FY14 statutory loss after tax of A$2.84 billion ($2.65 billion) on Thursday, the deepest loss in its history as a public company.
But shares in the company jumped 6 percent in early trade, as the airline said it anticipates a rapid improvement in its financial performance and expects to report an underlying pre-tax profit in the first half of the current fiscal year. A clear and significant easing in international and domestic capacity growth will stabilize the operating environment, it added.
The loss comes after Qantas took a hefty A$2.6 billion writedown due to a restructure that includes re-valuing its fleet. The figure compares with a restated post-tax profit of A$2 million last year and expectations for a bottomline loss that surpassed $1 billion.
On a pre-tax basis Qantas posted a loss of A$646 million, down from a restated profit of A$186 million last year but better than expectations for an underlying loss in excess of $750 million. Revenue and other income stood at A$15.35 billion compared with A$15.9 billion last year.