Qantas has at last come clean with the stock market today, admitting it is in trouble and to the tune of an underlying $250-300 million loss before tax in the six months to 31 December.
The company says it will remove another 1000 jobs over the next 12 months.
The share price plunged to $1.03 after the announcement, of which this is the key extract:
The statement is long on blaming external factors such as competition from Virgin Australia, and devoid of criticism of its own failures to properly manage its business.
Last month Qantas embarked on a renewed political lobbying campaign to prevent Virgin Australia succeeding in a $350 million capital raising program and called for a leveling of the playing field.
The campaign petered out earlier this week after the PM Tony Abbott said he didn’t know what Mr Joyce wanted, comments that followed the Qantas Group CEO saying he no longer wanted a change to the Qantas Sale Act.
There are serious questions to be asked as to whether Qantas conformed with its continuous disclosure obligations to the ASX.