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Qantas scraps more jobs, cuts capacity

April 14, 2009 - 9:32AM

Qantas will scrap up to 1750 jobs, including 500 management positions and has forecast a massive drop in its profit expectations, the airline revealed this morning.

Qantas also said it would sell about 10 aircraft and will cut freight capacity both internationally and domestically.

"Unfortunately, responding rapidly to declining economic conditions is going to have a direct impact on our staff. We employ over 34,000 people and we are striving to protect as many of their jobs as possible, but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1250 equivalent full-time positions will be affected in addition to the management reductions being made," said the airline's chief executive, Alan Joyce.

Qantas also slashed its full year pre-tax profit outlook to between $100 million and $200 million, down from its previous forecast of $500 million.

"Qantas today announced that, due to a rapid and significant deterioration of trading conditions in the past few weeks, it is revising its 2008-2009 full year profit before tax outlook downwards from around $500 million to between $100 million and $200 million,'' Qantas said in a statement.

The carrier said the profit forecast range is subject to no further changes in market conditions, fuel prices, and volatility in hedge accounting results.

The company will also reduce "flying capacity" by 5% after the company said it had experienced a sharp fall in trade conditions in the past few weeks.

BusinessDay, with AAP

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“Qantas will implement the following measures:
• A further five per cent reduction in flying capacity, affecting frequency on Qantas Airlines international and domestic routes;
• Cuts to freight capacity, on both domestic and international routes;
• Grounding the equivalent of ten aircraft and making them available for sale;
• Deferring aircraft orders, including four Airbus A380s and twelve 737-800 aircraft;
• Exploring a number of options with Boeing about 787-800 aircraft including reducing, in the near-term, the number of aircraft to be delivered;
• Reducing capital expenditure by at least $800 million in 2009/2010, and;
• Removing an additional 500 management positions.
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.....but the capacity reductions to protect the long-term viability of the overall Qantas Group mean that up to 1,250 equivalent full-time positions will be affected in addition to the management reductions being made.

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