Qantas Freight in the red as turnover dives

Qantas Freight reported underlying earnings before interest and tax (EBIT) of $7m for the year, $72m down on the previous year.

Including a $22m impairment of goodwill, EBIT came in at a loss of $15m.

"The result was reflective of the economic climate across the global freight industry and intense competition," Qantas said.

Qantas Group net profits for the past financial year fell 88% to $123m.

Meanwhile, the airline said it would take four additional wide-body A330 aircraft, on six-year leases, to allow for Jetstar’s long haul international growth.

Qantas chief executive Alan Joyce said the first A330-200 aircraft would be delivered in November 2010.

“A key component of the group’s growth strategy is our significant fleet renewal program,” Mr Joyce said.

“We currently have more than 160 aircraft on order over the next 10 years, including 50 Boeing 787s for operation by both Jetstar and Qantas.

“B787 program delays mean we have had to consider medium-term options to support new long haul market opportunities for Jetstar.”

Jetstar currently operates a fleet of six A330-200s.

This will increase to seven in December and grow to 11 with the delivery of these new two-class, 303-seat aircraft.

Mr Joyce said the group was also considering a fifth leased A330-200, also for operation by Jetstar.

“Jetstar’s growth is an important part of our two brand strategy and these new aircraft will support the airline’s growth across its international network which covers Australia, southeast Asia and the Asia-Pacific ahead of the delivery of the Qantas Group’s first B787-9,” he said.