Shares with Australian airline giant Qantas, have plummeted significantly since the company announced major job cuts with an estimated 1000 employees set to lose their jobs. The company announced business losses of an estimated £165 million in the second half of this year.
The business is being seriously affected by other airlines in direct competition, as well as increase in the price of fuel. The Australian dollar is also currently one of the strongest currencies in the world economy, which adds to the financial problems faced by the airline.
The current outlook for Qantas is uncertain, despite having recovered from a loss in 2012. The business seriously needs to focus on next year’s plans and strategies to ensure they have a future in the industry. According to Qantas, Australia’s airline industry is one of the hardest areas to be in across the world.
Qantas is competing with airline giant Virgin, who have their Head Office in Crawley. Recently, Virgin reported an increase in foreign investment, helping their business to continue successfully. However, Qantas has been affected by rules that limit the amount of foreign investment the business is allowed.
Qantas faces a troubled start to 2014, with many employees feeling professionally unstable at the prospect of losing their jobs. Fingers crossed the business has a better business year in 2014.