Qantas said it would further cut capacity as the global financial crisis continued to affect passenger demand. The Chief Executive Officer of Qantas, Mr Geoff Dixon, said that in addition to capacity cuts announced earlier this year, Qantas would reduce capacity equivalent to grounding 10 aircraft.
“By taking this action now we will have the flexibility to switch growth back on as soon as market conditions improve. We are in unpredictable times and the international business market, in particular, has slowed,” he said.
As a result of the slower demand Qantas now expected its profit before tax for the 2008/09 financial year to be around $500 million. This figure is within the current range of analysts forecasts. The current economic downturn had principally affected Qantas’ mainline international operations.
Qantas would manage the capacity cuts by not taking up the planned lease of two A330-200 aircraft, changing the flying patterns of existing aircraft to free up the equivalent of six B747-400s, three B767-300s and one A320-200 aircraft between now and mid-2010 and
halt all planned domestic market growth for Qantas and Jetstar.
Mr Dixon said Qantas would not be increasing its previously announced reduction of 1,500 jobs but will, however, be seeking further efficiencies by implementing an accelerated leave program.
