DHAKA: Australia's national flag carrier Qantas has reported an after-tax net loss of A$2.8bn ($2.6bn; £1.57bn) for the year ending in June - its biggest ever financial loss.

The struggling airline said the result was in part due to an A$2.6bn write-down on its international fleet.

Analysts were expecting a net loss of around A$750 million.

Qantas said weak domestic demand, poor consumer spending and rising fuel costs also contributed to the huge loss.

It is the worst result in the company's history and compares with a revised after-tax profit of A$2 million a year earlier.

One-off costs associated with redundancies contributed to the full-year loss, though, and the firm said its current underlying financial position was strong and improving.
Qantas aircraft Qantas has been trying to cut costs this year amid tough conditions

"There is no doubt today's numbers are confronting," said the carrier's chief executive officer, Alan Joyce, "but they represent the year that is past".

He added that the airline would return to underlying profit in 2015.

He also confirmed the carrier would not sell its popular frequent flyer programme.

"Our cash balance and liquidity position is strong," he said, "and the group's overall financial performance is rapidly improving."

The chief executive's positive outlook for the firm's future saw the carrier's shares rise in Australia by as much as 8% in morning trade, reports BBC.

But Peter Esho, managing partner of wealth management firm 100 Doors, said the firm's report card was "inadequate".

"I don't buy into the underlying numbers," he told the BBC.

"At the end of the day shareholder value is being destroyed and there needs to be accountability at the board and management level."

He said a return to profit assumed too many variables that could be used as excuses for another poor year.

"It's an avoid for me until there is a significant change in the board and management of this business."

BDST: 0945 HRS, AUG 28, 2014