Qantas to curb cost cutting
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Air and Business Travel yesterday reported that Qantas will not cut capacity further or axe more jobs to help it weather the current industry crisis.
The Australian airline last month predicted a second half loss of AU$188million. (US$146.4miliion), its worst result in six years.
The results prompted Qantas to announce a 5% cut in capacity and the shedding of 1,750 staff in a bid to reduce spending this year.
But Qantas’ CEO Alan Joyce told reporters the airline’s outlook had since improved.
“We have built up our cash balances and our plans going forward have deferred capital expenditure,” Mr Joyce said.
“We have used those and other mechanisms to make sure that Qantas has sufficient balance-sheet strength to get through the current difficult environment.”
In February Qantas raised AU$500 million through the sale of new shares. The airline may again seek help from the market.
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