Qantas cuts routes, jobs as profits tumble

Qantas cuts routes, jobs as profits tumble
By admin


Qantas has cut routes, announced a review of its maintenance bases and restructured engineering operations as it continues to strip costs out of the business.

Around 500 jobs will be axed in the immediate overhaul of ground operations with more roles likely to go following a two-month “consultative review” of heavy maintenance. But chief executive Alan Joyce stressed that “not one” job will be going off-shore.

The carrier is targeting savings of $700 million over 2011/12 and 2012/13.

Among the route changes announced this morning by Joyce were the withdrawal of its Singapore-Mumbai and Auckland to Los Angeles routes from May 6. A number of capacity changes will take place on other routes with Sydney to Bangkok 747 aircraft replaced with smaller A330s on certain services while the 747 will replace A330 flights between LA and New York.

Between Sydney and Auckland, A330s will be replaced with B737-800 aircraft.

The fresh shake-up came as Qantas unveiled an underlying pre-tax profit of $202 million in the six months to December 31, a fall of 52% on the previous corresponding period.

Qantas’ underlying earnings before profit and tax (EBIT) fell from $165m to $66m, while Jetstar reported an EBIT of $147m, a rise of $4m on last year.

The carrier took a $194m hit due to industrial action while the fuel bill increased 26% to $2.2 billion.

Joyce said the financial performance was a good one in challenging circumstances.

He added that management is continuing to “evaluate the options for establishing a premium airline in Asia”.

Email the Travel Weekly team at traveldesk@travelweekly.com.au

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]