Qantas Airways reported a A$245m annual loss in profits, hurt by rising fuel prices, a series of strikes that temporarily grounded its fleet and its struggling international division.
The Australian carrier's net loss for the 12 months to June compares with a profit of $250m last year.
It was the first time since Qantas went private in 1995 that the airline reported a net loss.
Chief executive Alan Joyce said Qantas would be canceling its order for a new fleet of 35 Boeing 787-9 aircraft, worth $8.5 billion at list prices. It is still planning to buy 15 787-8s.
"The B787 is an excellent aircraft and remains an important part of our future. However, circumstances have changed significantly since our order several years ago," Joyce said in a statement.
"It is vital that we allocate capital carefully across all parts of the Group," he added.
Qantas blamed the annual loss on its $4.3 billion fuel bill - up 18% from last year - an industrial dispute that the airline said cost $194m, and its international business, which lost $450m and is struggling amid increased competition.
"Our biggest challenge is Qantas International, but its transformation is on track," Joyce told reporters. "Our goal is to return it to profit and ensure it remains Australia's iconic flagship carrier."
Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was $95m, a steep drop from $552m a year ago.
Joyce declined to offer profit guidance for next year, saying it would be "imprudent" given the uncertain global conditions. The airline had warned in June that it expected a drop of up to 91% in full-year earnings, which immediately sent the company's stock plummeting to all-time lows.
