Shares in Qantas Airways Limited (ASX:QAN) have sunk to an all time low after forecasting its underlying profit will fall up to 90 per cent in the 2012 financial year.
Australia’s biggest airline has blamed Europe’s financial woes, rising fuel costs, a strong Australian dollar and its domestic expansion for the anticipated profit drop.
Qantas now expects to deliver an underlying profit before tax between $50 million to $100 million this fiscal year compared to $552 million achieved the year before.
Shares in Qantas dropped as much as 18 per cent following the news, hitting a record low of $1.16.
Qantas posted a net profit of $42 million in the first half of its 2012 financial year.
