Qantas trims for grim times

Qantas has cut jobs and aircraft capacity to deal with continued poor trading conditions, significantly revising down its 2008-09 full year profit to just $100- $200 million.

“Market conditions have deteriorated, especially in our international business,” said CEO Alan Joyce on April 15. “We are experiencing significantly lower demand, particularly in premium classes, and considerable price pressures with extensive sales and discounting by all carriers – in some cases leading to fare reductions of up to 50 per cent. ” As a result, the carrier plans to cut international and domestic passenger capacity within Qantas Airlines by a further five per cent, while freight capacity will also be cut through the commensurate reduction in available belly hold space.