Australian airline Qantas has said that it is cancelling an order for 35 Boeing Dreamliner aircrafts after it reported its first net loss since privatization in 1995.

The airline reported its first net loss of A$ 244 million or $256million for the year till 30 June. The airline had reported a net profit of A$ 250 million during the same period of the previous year. The airline said that the net loss was mainly due to increased cost of costs and growing losses at its international operations.

The company reported a loss of A$ 450 million from its international operations. The global business is hit hard by a slowdown in demand as well as a falling market share in its key markets. The airline is trying to turnaround Qantas International and has already cancelled services in some of the loss making routes and streamlined maintenance procedures.

Alan Joyce, chief executive of Qantas said, "Clearly we confront very difficult and uncertain trading conditions in Britain, Europe and the United States." He said that the growth was expected to be low during the quarter due to continuing uncertainties in the global economy.