Qantas focuses on clearing the debt decks

first_imgQantas Airways is trying to turn its attention back to flying and returning to profit after it paid off AUD $724 million in unsecured debt.The airline will pay back the amount in loans and bonds back this year, following its first junk bond raising of AUD $700 million and this means that its debt will be reduced by 47 per cent, The Sydney Morning Herald reported.Qantas is not suspected to return to profit until 2016 and half its debt will now not be due until 2019.The airline recorded a first-half year loss of in December because of fuel cost increases and its capacity war with Virgin Australia and its investment grade has been cut to BB+ by ratings agency Standard and Poors.Qantas expects to have a positive free cash flow from 2015.Source = ETB News: Tom Nealelast_img

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