Qantas prepares to cut capacity and jobs in an effort to minimise damage
Recent natural disasters have damaged Qantas’ profits as the airline warns that reduced travel to Japan, New Zealand and Australia has substantially brought down overall demand. The disasters will cost the company $140 million (€100 million), the carrier admits. Consequently, it plans to downsize capacity, suspend some routes and may have to cut jobs. The near-disaster last year involving one of its A380s and the temporary grounding of the rest will also impact on profits. Grounding the aircraft cost $80 million.
Add to these misfortunes the cost of fuel and the Australian airline has a serious problem. “The significant and sustained increases in the price of fuel are the most serious challenge Qantas has faced since the global financial crisis,” said Alan Joyce, chief executive officer of Qantas.