19 August 2009

Qantas to cut costs after profits fall

Qantas has announced plans to cut costs by AU$1.5 billion over the next three years after unveiling an 88% drop in annual profits

Net income for year to 30 June fell to AU$117m (Ã&#pound;58.5m).

The airline said the cost cutting programme, Q Future, would focus on sales and distribution, fuel conservation, aircraft utilisation and schedule, and procurement.

"There has never been a more volatile and challenging time for the world's aviation industry," said chief executive Alan Joyce.

"When most airlines are reporting losses, the Qantas group is reporting a profit for the full year.

"Through unprecedented and significant shifts in operating conditions and demand, we have remained financially strong.

"This has been due to our strategy built around two strong flying brands in Qantas and Jetstar, a portfolio of airline-related businesses, and an ongoing focus on managing costs and driving efficiencies."

By Bev Fearis

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