28 August 2014 at 08.07 GMT
A record annual net loss of A$2.8 billion (£1.57 billion) was recorded by Qantas for the year to June.
The underlying pre-tax loss came in at A$646 million.
The Australian airline blamed weak domestic demand, poor consumer spending and rising fuel costs.
The result was also due in part to an A$2.6 billion write-down on its international fleet.
The airline’s international arm saw losses almost double to A$497 million from A$246 million as competitors raised capacity by 44%.
A new holding structure and corporate entity will be established for Qantas International to create a “long term option” for it to attract external investment partnership opportunities.
The carrier sealed a deal last year to co-operate with Emirates on routes to Europe via Dubai.
Half of the 5,000 redundancies announced in February have been finalised.
Qantas said it will continue to assess opportunities to sell non-core assets such as airport terminals, property and land holdings in order to repay debt.
CEO Alan Joyce said: “There is no doubt today’s numbers are confronting, but they represent the year that is past.
“We have now come through the worst. With our accelerated Qantas transformation programme we are already emerging as a leaner, more focused and more sustainable Qantas group.
“There is a clear and significant easing of both international and domestic capacity growth, which will stabilise the revenue environment.
“We expect a rapid improvement in the group’s financial performance – and a return to underlying profit in the first half of 2015, subject to factors outside our control.
“After an extremely difficult period, we are focused on building momentum with our turnaround in 2015,” Joyce added.
Sourced from Travel Weekly