Australian airline Qantas Airways Ltd
(ASX:QAN) says the global economic outlook remains uncertain and that the company is yet to see substantial improvements in underlying business conditions.
The airline says there are many factors in play that could affect the timing of a recovery.
Qantas says uncertainty is also being created through significant capacity increases, domestically and internationally, by Qantas Group competitors, some of who it says enjoy very favourable taxation and other arrangements.
Chairman Leigh Clifford says with the strengths of its two flying brands, strong management, and dedicated people, the Qantas Group is well positioned to withstand this period of downturn, and will be ready to grasp opportunities fully during the eventual recovery.
In August Qantas reported a $117 million net profit for the 12 months to June, down from $969 million the year before.
The company also announced plans to reduce costs by $1.5 billion over the next three years starting with $500 million this financial year.
Qantas has posted inconsistent net profits over the last five years.
