Qantas shares hit a new low

Written By Unknown on Selasa, 10 Desember 2013 | 17.52

Shares in Qantas have hit their lowest level ever as investors continue to desert the company. Source: AAP

QANTAS shares have hit a record low as investors continue to desert the company because of its financial woes.

Qantas shares were worth 96.5 cents at the close of trade on Tuesday, below the previous all-time low of 97 cents recorded in June 2012.

The shares dropped three cents on Tuesday, their fourth straight day of losses since the airline said it would make a $300 million loss in the six months to December 31.

The company's market value has fallen by $527 million in that time, to $2.12 billion.

It was worth $4.17 billion less than nine months ago.

Ratings agency Standard and Poor's lowered Qantas' credit rating as a result of its profit warning, which will increase the airlines' costs of funding and leasing expensive aircraft.

Qantas will cut at least 1,000 jobs as part of plans to make huge savings in the coming years, and is in talks with the federal government about possible changes to rules on foreign investment in the local aviation industry.


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