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Qantas Airways Cuts Annual Profit ForecastApril 14, 2009 By: Meagan Drillinger
As the global downturn continues to drag on, the Australian airline Qantas Airways cut its profit forecast Tuesday. This is just another example of a struggling airline industry as passenger and cargo volume decline.
Previously, the airline had forecast a 500 million Australian dollar gain, but that number was sharply cut to around 100 to 200 million. In addition, Qantas is planning to cut 1,750 jobs and is reducing flying capacity by 5 percent.
“Market conditions have deteriorated, especially in our international business,” said Qantas’s chief executive, Alan Joyce. “We are experiencing significantly lower demand, particularly in premium classes, and considerable price pressures with extensive sales and discounting by all carriers – in some cases leading to fare reductions of up to 50 percent.”