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.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.