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Qantas unveils cost of A380 engine troubles

Thursday, 17 February 20113 min read

Problems with the A380 engine cost Qantas AU$55 million (£34.2m) in the first half.

An explosion in one of its Rolls-Royce engines meant the airline had to ground its A380 aircraft last November.

Qantas is still in talks with Rolls-Royce over compensation and has not ruled out taking legal action.

It warned there would be another AU$25 million (£15.5m) charge in the second-half results because of the problems.

Despite the disruption, Qantas reported that its first half net profits had risen four-fold to AU$241 million (£150m).

Underlying profit before tax rose 56% to AU$417 million, as sales grew 10% to AU$7.59 billion over the second half of last year.

Qantas predicted 2011 full-year profits would be considerably up on last year, but said profits would be impacted by high fuel prices and the recent floods in Queensland.

By Bev Fearis