Qantas Profit Drops 66%, Plans to Raise $322 Million

Qantas Airways, Australia's top airline, reported a 66 percent drop in first-half profit, hurt by high fuel costs, a downturn in international travel and a weak Australian dollar, and said
it was raising $322 million.

Mark Baker / AP Qantas passenger jets parked at their terminal at Sydney Airport.

The airline, which will undertake a share placement to reduce debt and help pay for fleet renewal, said it was not immune to the global recession, but reconfirmed profits before tax for the full year would be around $322 million.

"The aviation sector is experiencing a high degree of volatility," Chief Executive Alan Joyce said in a statement.

"Numerous airlines have failed over the past year, while many are unable to produce profits and are at risk of becoming unsustainable," he said.

Qantas' profit after tax dropped to A$210 million for the six months to December 31, down from A$618 million in the previous corresponding period.

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Fuel costs for the period were A$2.2 billion, which was 28.5 percent higher than the previous half year.

Qantas said it would pay an interim dividend of 6 cents.

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