- Qantas posts record $252 million loss
- 5,000 jobs to be cut
- Over 50 aircraft to be deferred or sold
Qantas has revealed a loss of $252 million across July-December 2013, its biggest since the airline was privatised almost two decades ago.
5,000 jobs will be axed from Qantas' 33,000-strong workforce by mid-2017.
Qantas will also shrink its fleet by over 50 aircraft.
Older less fuel-efficient planes such as the Boeing 767 and Boeing 747 will be retired ahead of schedule.
Forward orders for new aircraft – including eight Airbus A380s bound for Qantas and three of the Boeing 787's headed for low-cost offshoot Jetstar – are being deferred to an unspecified date.
Qantas has also put the brakes on expansion plans for Jetstar in Asia.
"We need to take the right decisions in accord with current market circumstances and our balance sheet" said Qantas Group CEO Alan Joyce. "In Singapore, growth has been suspended by the Jetstar Asia Board until such time as conditions improve."
Qantas also says that Jetstar’s Airbus A320 order book has been "restructured".
On the international front, Qantas will shutter its Perth-Singapore route in the third quarter of this year.
The airline says that "Qantas services between Melbourne and London will be re-timed in November 2014 to reduce A380 ground time in Heathrow" in the second quarter of 2015.
This will in turn free up an A380 for additional flying, Qantas says, although it's quick to assure travellers that there will be "no changes to overall capacity on London flights".
One bright spot in today's results is the Qantas Loyalty Division which includes the airline's frequent flyer scheme, which contibuted a record $137 million (before interest and tax) to Qantas' coffers.
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About David Flynn
David Flynn is the editor of Australian Business Traveller and a bit of a travel tragic with a weakness for good coffee, shopping and lychee martinis.