Qantas Airways Limited
(ASX:QAN) will have to wear larger costs in the second half as part of its turnaround strategy and has shied away from offering profit guidance.
Qantas chief executive officer Alan Joyce says the group cannot issue profit guidance amid a high degree of volatility and uncertainty.
He says the group's turnaround strategy will have cost impacts for the second half of the current financial year but that the airline will reap the benefits by fiscal 2014.
Qantas' strategy relies heavily on growth in Asia and the airline would is likely to see losses during the start-up period of Jetstar Japan and Jetstar Hong Kong.
The airline also plans to modernise operations, reduce costs and debt.
Qantas Airways generated a net profit of $111 million in the first half of the 2013 financial year.
