Qantas troubles continue amid credit downgrade

Qantas troubles continue amid credit downgrade
By admin


Qantas has described the latest downgrade of its credit rating to junk status as "not unexpected" as the troubled carrier vowed to continue to take “tough decisions” to ensure its future viability.

The airline said the decision by Moody’s Investor Services underlined the importance of taking decisive action in a difficult trading environment.

Moody’s downgrade of Qantas’s senior unsecured rating to Ba2, outlook negative, comes a month after the carrier said it would make a loss before tax of between $250 million and $300 million in the first half.

The downgrade, which follows a similar move by Standard and Poor's last month, means it will be more expensive for Qantas to borrow money.

Chief financial officer, Gareth Evans, said the airline has a strong track record of disciplined financial management and stressed it would continue to make decisions “however tough they may be”.

He said it was continuing to work through the accelerated $2 billion cost cutting program.

“The group has made significant progress over the past two years to reduce costs and increase competitiveness, as part of Qantas’ biggest transformation since privatisation,” Evans said.

“However, earnings conditions have deteriorated rapidly in recent months and we now face some of the most challenging circumstances in our history, including an uneven playing field in Australian aviation.

“We continue to talk to the Australian Government about options for resolving this situation.”

Qantas said it will provide an update on its transformation program and its capital and structural review next month.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

moodys qantas

Latest News

  • Aviation

Air Vanuatu cancels all flights to Australia, files for insolvency

Hundreds of passengers have been stranded across the Pacific, Australia and New Zealand after Air Vanuatu cancelled a slew off flights across the region. Riddled with technical faults over the last year, Air Vanuatu filed for insolvency on Monday and has cancelled flights to and from Sydney, Brisbane and Auckland until at least Sunday. The Vanuatu […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]