Qantas shares are in a freefall with the company warning it would post its first loss since 1993 and the first after its listing on the Australia Securities Exchange in 1995.
Chief executive Alan Joyce is facing increasing pressure after his warning yesterday flummoxed investors leading to a 19-per cent drop in the company's share price.
The shares were down to a record low, falling 26.5c to $1.155, which wiped $600 million off the value of the company, which has nearly halved in value in a year.
The company is now valued at $2.6 billion, which compares with Airlines Partners Australia's $11-billion private equity takeover offer shareholders rejected for the airline in 2006.
Qantas issued a warning that this financial year's underlying pre-tax profit would be down 91 per cent from $552 million last year to between $50 million and $100 million.
According to Joyce it would mean a bottom-line loss for the year, but he declined to offer a forecast.