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Qantas Profits Drop 88 PercentSeptember 22, 2009 By: Jena Tesse Fox
Qantas has become the latest airline to give a downbeat view of trading conditions despite being one of the few to post a profit— albeit small— for the first half of the year.
The Australian flag carrier said the global outlook “remains uncertain” as it announced a fall in profits of 88 percent to $101 million.
It follows numerous pieces of bad news for the aviation sector, including a prediction by IATA that airlines are set to lose $11 billion this year.
The company has put a $1.2 million cost-cutting program in place in order to improve profitability.
Qantas is also reported to be involved in a potential rescue of struggling Japanese flag carrier, Japan Airlines.
Qantas, British Airways and American Airlines are said to be in talks with the fellow oneworld Alliance partner in a bid to stave off bankruptcy.
The three are also keen to prevent a rival bid from Delta Airlines, a member of Skyteam Alliance.
JAL announced job cuts of 6,800 employees last week, or 14 percent of its workforce.
The struggling airline has indicated it needs at least $2.5 billion just to help it stay afloat this year.