eastwest101
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QANTAS Airways today said it will reduce international and domestic flying capacity, retire aircraft and cut management positions in response to natural disasters and higher jet fuel prices.
Australia's flag carrier said its second-half profit was now expected to take a $140 million hit from the cost of natural disasters, including flooding and Cyclone Yasi in Queensland and earthquakes in Japan and New Zealand. That financial impact would come in addition to an expected $25m hole from the grounding of its A380 super-jumbo fleet following an engine explosion last November.
Qantas said it was too early to estimate the likely impact of the events on its result for the 2012 financial year.
Domestic capacity growth in the six months to June 30 will be reduced to 8 per cent from 14 per cent, while growth in international capacity will slip to 7 per cent from 10 per cent, Qantas said.
Up to four weekly Jetstar flights from Australia to Japan will be suspended between April and August, as will a Qantas service between Perth and Tokyo, along with other changes, including the early retirement of two Boeing 767 aircraft.
Chief executive Alan Joyce said today: "We need to act decisively to respond to rising fuel costs and natural disasters, just like we did during the global financial crisis, to ensure the ongoing sustainability of our business."
Australia's flag carrier said its second-half profit was now expected to take a $140 million hit from the cost of natural disasters, including flooding and Cyclone Yasi in Queensland and earthquakes in Japan and New Zealand. That financial impact would come in addition to an expected $25m hole from the grounding of its A380 super-jumbo fleet following an engine explosion last November.
Qantas said it was too early to estimate the likely impact of the events on its result for the 2012 financial year.
Domestic capacity growth in the six months to June 30 will be reduced to 8 per cent from 14 per cent, while growth in international capacity will slip to 7 per cent from 10 per cent, Qantas said.
Up to four weekly Jetstar flights from Australia to Japan will be suspended between April and August, as will a Qantas service between Perth and Tokyo, along with other changes, including the early retirement of two Boeing 767 aircraft.
Chief executive Alan Joyce said today: "We need to act decisively to respond to rising fuel costs and natural disasters, just like we did during the global financial crisis, to ensure the ongoing sustainability of our business."
, a pretty rare event.
