Qantas Airways Limited
(ASX:QAN) has today announced 5000 job losses across the board of its operations and a $252 million underlying first-half loss. The airline will also sell old planes and defer the purchase of new ones as well as ditch under-performing routes. Qantas also announced an agreement with Brisbane airport to sell its lease back to the airport corporation for $112 million.
CEO Alan Joyce says the disappointing numbers are a result of lacklustre sales in the local market, increasing fuel costs and an uneven playing field against its competitors. Mr Joyce said the airline would take unprecedented action to strengthen the core of the business but that there were more tough decisions ahead.
Qantas has declined to pay a dividend and whilst the CEO affirmed the airline’s commitment to a return to profit, the airline could not provide any future profit guidance due to the uncertainty of future plans.
