12 December 2022, etc.venues Monument, London
Business Travel Show Europe, presented by The BTN
21 November, London Hilton Metropole
Qantas is to cut 1,000 jobs after issuing a profit warning due to a “marked deterioration” in trading during November.
The Australian airline said that it was expecting to make an “underlying” loss of between Aus $250 million (£140 million) and Aus $300 million (£165 million) for the six months to the end of December.
Qantas said that it had suffered from falls in “both passenger loads and yields below the already negative trends for the year to date”.
CEO Alan Joyce said the airline faced “immense challenges” and blamed competition from foreign government-owned carriers. He added that Qantas would now “accelerate” its cost cutting programme which includes the CEO taking a pay cut.
“The Australian international market is the toughest anywhere in the world,” said Joyce.
“Our competitors in the international market, almost all owned or generously supported by their governments, have increased capacity to pursue Australian dollar profits, changing the shape of the market permanently.
“Since early 2012, there has also been an unprecedented distortion of the Australian domestic market, with Virgin Australia’s strategy to seek majority ownership and massive financial backing from foreign government-owned airlines.”
Singapore Airlines, Etihad Airways and Air New Zealand all have stakes of around 20 per cent in Virgin Australia.
Joyce added: “In November, Virgin signalled its intention to continue its strategy, which is designed to weaken Qantas in the domestic market, with a Aus $300 million-plus (£165 million) injection from its foreign owners.
“The uneven playing field in Australian aviation is being tilted further. We cannot and we will not stand still in these extraordinary circumstances.
“As we take these urgent actions, we will continue to take the fight to the competition.”