Qantas Airways has posted a record $2.8bn (€1.06bn) loss, reflecting a profit-draining battle with its smaller rival Virgin Australia and aircraft write-downs.

Qantas Airways says it will shed 5,000 jobs as it posted a first-half loss of AUD $235m (€153m) amid tougher competition, sending its shares down more than 7%.

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European aviation stocks declined, following a drop among Asian carriers, on concern an outbreak of the bird-flu virus in China will clip travel and hurt demand already unsettled by rising military tensions with North Korea.

Australia’s competition regulator has given Qantas Airways and Emirates final approval to form a five-year global alliance, with special conditions for flights across the Tasman Sea.

Qantas Airways reported a AUS$245m (€207m) annual loss in profits today, hurt by rising fuel prices, a series of strikes that temporarily grounded its fleet and its struggling international division.

An Australian man claimed he was put on hold by Qantas Airways for so long that he managed to read an entire managerial textbook, with the 15-hour phone call being enough time to fly to the US.

World stock markets were mixed today as enthusiasm for a European plan to rescue Spain's teetering banks turned to scepticism.

Shares of Qantas Airways plummeted to an all-time low today after the Australian flagship carrier forecast a drop of up to 91% in full-year earnings.

The entire global fleet of Airbus A380 superjumbo jets are to be checked for cracks inside the wings.

Qantas Airways’ credit rating has been downgraded, but the Australian company says it remains in a strong funding position.

SEVEN passengers have been treated for cuts and bruises after a Qantas Airways superjumbo hit severe turbulence en route from London to Singapore.

Qantas Airways said today its half-year profit was likely to slide by as much as two-thirds following strikes and high jet fuel prices.

Qantas Airways is giving free flights to people stranded when it grounded its fleet last weekend due to strike action.

A London-bound flight from Singapore landed safely in Dubai after being diverted due to an engine problem, Qantas Airways said.

Australian police are investigating the suspected sabotage of the entertainment system on a Qantas Airways airliner during the ongoing bitter labour dispute between the airline and the aircraft maintenance union, officials said today.

Qantas Airways said its flights were back on schedule today, a day after an Australian court ruling ended 48 hours of travel chaos stemming from the airline’s decision to ground its entire fleet.

QANTAS Airways planes returned to the skies yesterday after an Australian court ruled on a bitter labour dispute that had prompted the world’s 10th-largest airline to ground its entire fleet.

Australia’s air safety authority cleared Qantas Airways to resume flying today, after it grounded its entire fleet amid a bitter union dispute.

QANTAS Airways could begin returning its grounded fleet to the skies as early as today after an Australian court intervened in a bitter labour dispute by ending strikes and cancelling a staff lock-out.

An Australian court has ended the union strikes and abrupt grounding of the Qantas Airways fleet after it stranded tens of thousands of passengers.

Australia’s government ordered an emergency arbitration hearing today after Qantas Airways grounded its global fleet amid a bitter dispute with striking workers, stranding passengers around the world.

Qantas Airways has grounded all aircraft over an industrial dispute which has disrupted the travel plans of the Ireland International Rules squad.

Australian national carrier Qantas Airways grounded its global fleet indefinitely today in a lockout of workers whose strikes have disrupted operations for weeks.

Australian national carrier Qantas Airways has grounded all of its planes around the world due to an industrial action by its staff.

AUSTRALIA’S Qantas Airways industrial fight with unions has turned nasty, with racist threatening letters sent to the airline’s Irish chief and other management staff, and cars and homes of Qantas staff damaged after they refused to strike.

Qantas Airways said it more than doubled annual net profit to AUS$250m (181.56m) and warned that the general operating environment is challenging and extremely volatile.

World stock markets lost steam today after Germany’s economic growth came to a near-standstill in the second quarter, adding to fears that the global economy is slowing down.

Qantas Airways said today that it plans to cut up to 1,000 jobs as part of a major shake-up of its international business which will include the launch of a new Asia-based airline.

Thousands of passengers in Australia and New Zealand were affected when airlines suspended flights today as an ash cloud from an erupting volcano in southern Chile spread, threatening to damage engines.

Three airlines have reached financial settlements with a New Zealand regulator for participating in a price-fixing scheme in the global air freight market, the regulator said.

A FAULTY part or design issue may have caused the severe damage to an engine that forced a Qantas Airways Airbus A380 to make an emergency landing in Singapore, Qantas’s boss said yesterday.

QANTAS Airways and Singapore Airlines suspended flights of Airbus A380 superjumbos yesterday after engine failure forced an emergency landing in Singapore.

BAGGAGE charges, priority boarding and credit card fees helped Ryanair take in €663 million in ancillary revenues last year, more than any other European airline.

Airline bosses today dismissed safety fears regarding the Airbus A330, saying they were confident despite last week’s Air France jet crash.

British Airways and Qantas today said they had failed to reach agreement on a potential merger.

RYANAIR could be forced to up its bid for Aer Lingus whose value has soared more than €70 million since last week’s takeover approach.

A merger of Qantas and British Airways must involve control of the “Flying Kangaroo” remaining in Australia, officials in the country insisted today, as Qantas shares surged on hopes a deal would see it emerge a stronger competitor to big regional rivals like Singapore Airlines.

A giant new airline could be formed following news that British Airways is in talks about a possible merger with Australian carrier Qantas.

British Airways today revealed it was in talks over a potential merger with Australian rival Qantas.

Passengers on a Qantas Airways flight to London were stranded overnight because of damage to a wing and another Qantas flight was cancelled today after fumes were detected on board.

Australia’s aviation agency told Qantas Airways to improve its airline maintenance system following a review prompted by a series of problems that plagued the airline in recent months.

Air safety investigators said the “sudden and complete release” of a pressurised oxygen bottle caused the explosion that blew a hole in the fuselage of a Qantas jet last month, forcing an emergency landing in the Philippines capital, Manila.

A Qantas Airways flight landed safely after a problem with one of its engines on a flight from Australia to New Zealand, the company said today, the latest in a series of mechanical incidents for the airline.