Qantas has posted its first half-year loss in six years, although the deficit was moderate by today’s standards, and the carrier says it can see early signs of a recovery in demand. The Australian airline group lost A$93 million (US$77 million) in the first six months of 2009, 1.4% of its revenue of A$6.7 billion for the period. A year earlier it made a profit of A$351 million. Profit before tax for the financial year to June 30 was A$181 million.

At least one Scud D missile jointly developed by North Korea, Iran and Syria failed in a test shot in Syria in the second half of May, Japan’s Kyodo news wire reports, citing diplomatic and military sources. The guidance system malfunctioned in a Scud D that several sources agree was fired from southwestern Syria to the northeast.

Air China will reinforce its links with Cathay Pacific in a transaction that will largely consolidate Chinese government stakes in the Hong Kong airline. “The changes will strengthen the existing relationship between Air China and Cathay Pacific and serve to further boost the position of Beijing and Hong Kong as key aviation hubs in the region,” said the parties to the transaction in a joint statement. Investment analysts doubt, however, that the deal will affect Cathay Pacific’s management.