The share price of Qantas Airways dropped to under A$1.00 for the first time this week as ratings agency Standard and Poor (S&P) said it was to put the airline under review for a possible ratings cut. Shares in Qantas fell over 8% to 97 cents per share before recovering to 99 cents.
|Qantas A380 (Photo Credit: Simon_sees)|
Share prices in Qantas have dropped by almost a third over the past four days wiping a staggering $1 Billion USD from its value. Earlier this week Qantas said its profits would be down by almost 90% this financial year after costs, including fuel, soared whilst demand for its international flights fell.
Qantas currently has a BBB credit rating (two stages above junk rating), which S&P said would be evaluated over the next 90 days. If Qantas' credit rating were to be cut to junk status, it would make borrowing much more expensive placing even greater pressure on the airline.
Qantas CEO Alan Joyce, remains committed to cutting costs and restructuring and hopes he can have the international business making a profit by 2014.
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