Qantas facing record $868 million loss, credit downgrade to 'junk' rating

Back in August when Qantas declared a $6 million profit on the back of a one-time $125m settlement payment from Boeing, I called BS. OT seemed that they may have jury rigged their accounting to just barely be able to show a profit in the quarter of a substantial non-recurring revenue payment. It would be hard to believe that while Qantas and Virgin Australia are in the midst of a fare ware for marketshare that either would report glowing earnings reports. Especially not Qantas as Virgin is making losses to build out new lounges and facilities, while offering low fares to grow its' presence.

Sadly (for Qantas) my suspicions were proven true.

Is Qantas going out of business?

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Qantas slumps to 'junk' status

Qantas has been downgraded to 'junk status', piling further pressure on the airline as it struggles in the face of record losses.

http://www.ausbt.com.au/qantas-faces-record-868m-loss-slumps-to-junk-credit-rating-status

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Qantas Airways credit rating downgraded to junk

Qantas Airways' credit rating was downgraded to junk status Friday, one day after the beleaguered Australian carrier said it would slash 1,000 jobs and suffer half-year losses of at least 250 million Australian dollars ($225 million).

http://www.usatoday.com/story/todayinthesky/2013/12/09/australias-qantas-airways-to-slash-1000-jobs/3915635/