The Emirates alliance has been "absolutely fantastic", Qantas chief executive
"There is no doubt that today's numbers are confronting," Joyce told a press conference in
Despite the record loss, Qantas share price closed on Thursday up 6.95 per cent at
Capacity saturated domestic and international markets along with record fuel prices were blamed for the historical loss. But the airline's international division, which will now be spun off under a separate holding company as part of a strategy to encourage foreign investment into the Group, dragged the company down.
The international division had a before interest and tax loss of
Joyce talked up the Emirates partnership that he said has provided the airline with "better connections in
"We have seen significant travel levels going over
But on Thursday,
"People who once flew on Qantas operated aircraft who suddenly fly on the Emirates operated aircraft are seeing a big improvement in quality. Instead of booking on the Qantas website they are now just jumping on the Emirates website," he said.
Former Australian Prime Minister
Joyce insisted that "the worst is over" and announced that the Group will not be selling off its profitable loyalty programme, which has been the centre of much speculation, and that he has targeted a half year profit for the six months ending
Webber said foreign investment will not make up for the international capacity saturation haunting Qantas. He said that airline needs to establish more codeshare partners to drive revenue into the international division.
"It (Qantas) can't match these airlines with costs and it never will. As soon as you have Australian labour cost base there is no way you can compete with the Gulf carriers and the Asian carriers," he said.
Qantas domestic reported a before interest and tax profit of
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