Qantas lost A$2.8B in 2014 — then cut 5,000 jobs and returned to profit in a year

Qantas, Australia's flag carrier founded in 1920, hit a crisis in the 2014 financial year. It reported a record net loss of A$2.843 billion, driven by intense competition from Middle Eastern carriers, high fuel costs, and a massive write-down on the value of its international fleet. The loss was the largest in the airline's 94-year history.

CEO Alan Joyce launched a radical restructuring. The workforce was cut from 33,265 to 28,622 employees — a reduction of nearly 5,000 jobs. The fleet was reduced from 312 to 299 aircraft. Unprofitable international routes were cancelled, capacity was reduced, and costs were slashed across the entire business. The airline also raised capital to strengthen its balance sheet.

The transformation worked. In the 2015 financial year, Qantas returned to profitability with a net profit of A$560 million. By 2016, net profit had grown to A$1.029 billion. The airline continued to report strong profits through 2019, and the restructuring positioned Qantas for future investments including the Project Sunrise non-stop flights to Europe.