Qantas Airways Sharply Cuts Annual Profit Forecast

Qantas said the past few weeks had got even worse – comments that bode ill for the entire industry, which has already suffered months of pain, and could foreshadow similar capacity cuts and other savings measures at other airlines in weeks to come.

Qantas still expects a pre-tax profit for the business year that ends on June 30, but its new forecast of 100 million to 200 million Australian dollars, or $73 million to $146 million, is well below the 500 million dollar gain it had previously forecast.

The airline also announced it would cut shed 1,750 jobs, including 500 management positions. It will reduce flying capacity by 5 percent, defer aircraft orders, including four Airbus A380’s and 12 Boeing 737-800’s, ground 10 others and cut capital expenditure by 800 million dollars in 2009-2010.