Qantas profit set to nosedive 90 percent amid European crisis, soaring fuel prices

Sydney, June 5 (ANI): Australia's flagship carrier Qantas Airways is expecting a fall of up to 91 percent in its full year underlying profit due to a troubled European economy and soaring fuel costs.

Qantas said that it expected its underlying profit before tax in the year to June 30 to be in the range of 50 million dollars to 100 million dollars.

"The forecast result reflects the recent deterioration in global aviation operating conditions driven by the European economic crisis, the group's highest ever jet fuel bill, and substantial capacity increases in the domestic market that have reduced yields," Qantas said.

According to news.com.au, rising fuel costs, the high Australian dollar and weak markets in the United Kingdom and Europe, Qantas said, have compounded the losses in its business.

Qantas Chief Executive Alan Joyce said: "We remain focused on returning Qantas International to profitability in 2014 and for Qantas International and Domestic combined to exceed their cost of capital on a sustainable basis within five years of August 2011". (ANI)