Qantas profit forecast plunge

QANTAS Airways has cut its profit forecast by more than half, which will force it to cut five per cent of its workforce, the company claims.

Full-year profits had been estimated to be A$500 million (US$361 million) but are now likely to only be between A$100 million and A$200 million ($72.3 million to $144.6 million).

At least 500 management jobs will be lost, on top of the 90 senior management jobs cut last month and 1,500 jobs last year. There is a possibility of an additional 1,250 more also to go.

“Market conditions have deteriorated, especially in our international business,” said chief executive Alan Joyce.

“We have no choice but to lower our profit forecast and make major changes to ensure Qantas can weather the current commercial environment,” he said.

Qantas has also deferred delivery of four Airbus SAS A380s and 12 Boeing 737-800s.