Qantas post first half-year loss since 1995

Australian airline Qantas has posted its first half-year loss since 1995.

One of the world's most profitable airlines, Qantas blamed the Iraq war and the SARS virus for the Aus$9m (€5.3m) losses for the six months to June 2003.

The Sydney-based carrier has already cut a tenth of its workforce and revised its full-year earnings downward twice this year.

Qantas remains optimistic that its fortunes will pick up however citing a restructuring plan and continued cost cutting as proof of its intentions.

The airline plans to cut overheads by Aus$1bn over the next two years by establishing three separate business units with its own management, budgets and profit targets.

Each unit will be required to produce targeted returns on assets allocated to them.

Chief executive Geoff Dixon said: "I'm not going to sit here and say we're out of the woods yet, but I'm feeling quite bullish.

Dixon also urged competition regulators to approve its proposal to take a 22% stake in Air New Zealand, which he says is crucial for both airlines' future viability.