Qantas just posted as $252 million half-year before-tax loss, and confirmed it will cut 5000 jobs.
Chief executive Alan Joyce said he regretted the job losses, but that they were necessary.
“we will do everything we can to make the process easier for employees who leave the business.
“We have already made tough decisions and nobody should doubt that there are more ahead,” he said.
There will also be a wage freeze across the entire Qantas group.
“We are facing some of the toughest conditions Qantas has ever seen,” Joyce said.
Qantas unveiled a range of cost-cutting measures totalling $2 billion by 2017, through the job cuts, the sale or deferral of 50 aircraft, and a $1 billion capital expenditure reduction.
This includes the deferral of eight A380 aircraft that remain on order, and the amendment of several of the airline’s routes, including the slashing of a Perth to Singapore service.
“The Australian domestic aviation market has been distorted by current Australian aviation policy, which allows Virgin Australia to be majority-owned by three foreign government-backed airlines and yet retain access to Australian bilateral flying rights.
“Qantas has been undertaking its biggest ever transformation over the past four years, cutting comparable unit costs by 19 per cent over four years, but this is not enough for the circumstances we face now,” said Joyce.
Here are the key figure:
- Underlying PBT loss: $252 million
- Statutory Loss After Tax: $235 million
- Yield excluding FX down 3%
- Revenue: $7.9 billion, down 4%
- Underlying fuel costs excluding FX impact: $2.3 billion, up 3%
- Comparable unit costs down 2%
- Liquidity: $3 billion