Qantas A380 problems bite into half-year profits

Feb 17 2011

_49907267_rolls.jpgQantas Airways said its first half net profits had risen four-fold, but it added that last year's explosion in one of its Rolls-Royce engines had wiped off $55m (£34.4m).

The breakdown led to the grounding of its A380 aircraft last year.

The Australian airline predicted 2011 full year profits would be much higher than last year.

But it warned that these would be held back by high fuel prices and the recent floods in Queensland.

Qantas said there would be another $25m charge in the second-half results from the A380 problems.

A statement from Qantas said it was still in talks with Rolls-Royce over compensation for the economic loss caused by the engine explosion.

It said no agreement had yet been reached.

Net profit for the six months to the end of 2010 was A$241m ($241.8m, £151.2m) after A$58m for the same period a year ago.

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