11 Dec 2013

Qantas shares hit new low

5:09 am on 11 December 2013

Shares in Qantas fell to their lowest level ever on Tuesday as investors continue to desert the company because of its financial woes.

Qantas plane tail.

Photo: RNZ

Qantas shares were worth A96.5 cents at the close of trade, below a previous all-time low of A97 cents in June 2012.

The shares dropped three cents on Tuesday, their fourth consecutive day of losses since the airline said it would make a $A300 million loss in the six months to 31 December.

AAP reports the company's market value has fallen by $A527 million in that time, to $A2.12 billion.

It was worth $A4.17 billion less than nine months ago.

Standard & Poor's lowered the airline's credit rating as a result of its profit warning, which will increase the costs of funding and leasing expensive aircraft.