Qantas slashes profit forecast
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Australian airline Qantas downgraded its annual profitforecast by up to 80% following what it called a “rapid and significantdeterioration of trading conditions”. According to a Channel NewsAsia report,the carrier also plans to slash as many as 1,750 jobs and defer multi-billiondollar orders for 16 aircraft.
“We have no choice but to lower our profit forecast and make major changes toensure Qantas can weather the current commercial environment,” Chief ExecutiveAlan Joyce was reported saying.
Qantas’ profit forecasts has now been cut from AU$500million (US$350 million) to AU$100-200 million, while the airline warned thatthe new projections could be downgraded even further if conditions continued todecline.
The airline also said it would reduce capital expenditure by at least AU$800million in 2009-10, defer orders for four Airbus A380s and twelve Boeing737-800s and reduce capacity by a further 5%. Qantas had ordered 20 A380s forits long-haul fleet. In addition, it will ground the equivalent of 10 aircraftand make them available for sale, the report said.
Qantas added that it would cut 500 management jobs and may have to slash afurther 1,250 full-time equivalent positions to protect the airline’s long-termviability.
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