15 Nov 2012

Qantas to buy back shares and pay debt early

11:35 am on 15 November 2012

Qantas Airways is to spend $A100 million to buy back about 4% of its issued stocks in a move to strengthen its dwindling share price.

The airline has also announced it will repay $A650 million of debt ahead of its due date as it moves to strengthen its balance sheet.

"The board believes the current Qantas share price does not reflect fair value of the group," chairman Leigh Clifford said in a statement on Thursday.

AAP reports Qantas shares last traded at $A1.23. They were worth $A1.815 at the end of March, which was their highest in the last 12 months.

The debt to be repaid was due in June 2013, but will now be repaid in January, Qantas said.