Qantas Airways Limited
(ASX:QAN) will repay $650 million in debt ahead of schedule and invest up to $100 million towards an on market share buy-back.
The share buy-back represents approximately 4 per cent of Qantas shares on issue and is expected to commence next month.
The accelerated debt reduction forms part of a $1 billion debt reduction program being targeted by Australia’s largest carrier in fiscal 2013.
The measures will be funded by Qantas’ recent sale of road freight company Star Track and a settlement from Boeing relating to a B787 airliner order.
Qantas says following its recent refinancing of a $400 million undrawn loan facility it retains a strong ongoing liquidity position.
Qantas Airways reported a $244 million loss in the 2012 financial year.
