Worst second half result in six years
Qantas has predicted a second half loss of A$188m (€101m), its worst result in six years.
The Australian airline, hit by falling demand and increased competition, also lowered its predicted full year pre-tax profit by 80%, a Reuters report said today (April 14).
Qantas now expects a pre-tax profit of between A$100-200m for the year ending June 30, down from a previous forecast of around A$500m made in November.
The airline blamed a "rapid and significant" trading deterioration in recent weeks.
"In terms of overall business traffic, we are seeing a drop of somewhere between 15 and 20 percent, depending on the route," said Qantas cfo Colin Storrie.
Qantas recorded a pre-tax profit of A$288m in the first half ending December 31, resulting in a second half loss of A$188m, Reuters said.
Qantas said it would defer aircraft orders for four A380s and 12 B737-800s, and said it would look into cutting the number of B787-800 planes to be delivered.
The airline hopes to reduce spending by more than A$800m in 2009/2010 by cutting capacity by a another 5% and axing a further 1,750 jobs, including 500 management positions.
Last month, Qantas announced it would shed 90 top management positions in response to "commercial challenges."
The airline in February blamed a 66% slump in first half profits on high fuel costs, a decline in global travel and a weakened Australian dollar.
Qantas' share price fell to A$1.74 following today's announcement, but has since risen to a day's high of A$2.00.
www.qantas.com.au