Qantas shares dive on profits warning

<p>The share price of Qantas has dropped after the firm released a profit warning.</p>

Qantas Airways has seen its share price drop today (December 5th) after the airline announced major job cuts in its latest financial statement.

It revealed in a statement that a "marked deterioration" in its financial position means it will lose up to A$300 million (£165 million) for July-to-December.

Chief executive Alan Joyce stated that the airline is facing "massive challenges" in the coming months. He said a strong Australian dollar and record fuel costs as among the reasons Qantas has struggled this year.

The share price of the company dropped by more than 15 per cent on the back of the news. Qantas also announced it will be cutting over 1,000 jobs in a bid to save money.

Mr Joyce added that the airline would "do whatever we need to do to secure the Qantas Group's future", with urgent action set to be taken.

Qantas made a profit of A$6 million for the year ending on June 30th 2013.

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