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

  • Destinations
  • News

APT Launches 2025 Asia Adventures

APT has launched its Asia Adventures for 2025, including new luxury holidays in India, Sri Lanka and Japan. Five new tours lead guests to the highlights of India, including a seven-night cruise along the rarely travelled Lower Ganges aboard the Ganges Voyager. Further south, Sri Lanka’s greatest destinations are revealed on a new 15-day Land […]

  • Cruise
  • Luxury
  • News

Seabourn announces Western Kimberley Traditional Owners as Godparents of Seabourn Pursuit

Seabourn has named Western Kimberley Traditional Owners, the Wunambal Gaambera, as Godparents of the ultra-luxury purpose-built Seabourn Pursuit. It is the first cruise line to appoint Traditional Owners as godparents of a ship. Seabourn Pursuit embarks on its inaugural season in the Kimberley region this June. The naming ceremony will take place on Seabourn Pursuit’s […]

  • Luxury

Malolo Island Resort opens brand new Spa

Fiji’s Malolo Island has added another string to its bow – opening its $1.3 million day spa on Thursday, 18th April 2024. (Lead Image: matriarch Rosie Whitton with spa staff) Located at the edge of the resort’s luscious patch of tropical rainforest, the new “Leilani’s Spa” adds another level of elevated experiences to Malolo’s already […]