Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

Aylan Kurdi: A tragic symbol of the migrant crisis

Read more

BUSINESS DAILY

Disney hopes to score big as new Star Wars toys hit the shelves

Read more

MEDIAWATCH

Photo of Syrian boy continues to cause furor

Read more

IN THE PAPERS

Libération: 'Why we didn't publish Aylan's photo earlier'

Read more

EYE ON AFRICA

Race debate overshadows Springbocks' preparation for world cup

Read more

IN THE PAPERS

Could this photo mark a turning point in the European migrant crisis?

Read more

THE DEBATE

China's might on parade: Old foes wary of show of strength (part 2)

Read more

THE DEBATE

China's might on parade: Old foes wary of show of strength (part 1)

Read more

PEOPLE & PROFIT

State and stocks: 'The Great Fall of China'

Read more

Business

Qantas slashes yearly profit forecast by up to 80 percent

Latest update : 2009-04-14

Australian airline Qantas downgraded its yearly profit forecast by as much as 80 percent and said it would slash up to 1,750 jobs. The airline also said it had put off multi-billion dollar orders for 16 aircraft.

AFP - Australian airline Qantas downgraded its annual profit forecast by up to 80 percent Tuesday and said it would slash as many as 1,750 jobs and defer multi-billion dollar orders for 16 aircraft.
   
"We have no choice but to lower our profit forecast and make major changes to ensure Qantas can weather the current commercial environment," chief executive Alan Joyce said, lowering profit forecasts from 500 million dollars (350 million US) to 100-200 million.
   
Qantas said it was responding to a "rapid and significant deterioration of trading conditions in the past few weeks" and warned the new profit guideline could be downgraded further if conditions continued to decline.
   
"The profit forecast range is subject to no further changes in market conditions, fuel prices and volatility in hedge accounting results," it said.
   
The airline also said it would reduce capital expenditure by at least 800 million dollars in 2009-10, defer orders for four Airbus A380s and twelve Boeing 737-800s and reduce capacity by a further five percent.
   
Qantas had ordered 20 A380s for its long-haul fleet.
   
In addition, it will ground the equivalent of 10 aircraft and make them available for sale, the carrier said.
   
Qantas said it would cut 500 management jobs and may have to slash a further 1,250 full-time equivalent positions to protect the airline's long-term viability.
   
The latest jobs cuts come after Qantas slashed 1,500 positions in July last year and 90 senior management jobs last month.
   
Deputy Prime Minister Julia Gillard said the government would do what it could to help Qantas workers who lost their jobs.
   
"Clearly this is very unwelcome news and it's going to be very distressing for those Qantas workers who are shortly to be told that they have been made redundant," she told reporters.
 

Date created : 2009-04-14

COMMENT(S)