QANTAS has announced a raft of cost-cutting measures including reducing capacity in response to rising fuel costs.
Qantas chief executive Alan Joyce said the measures included reductions in domestic and international capacity, retirement of aircraft, reduction of management positions and ongoing fuel surcharges.
It is not known how many jobs will be lost, but Mr Joyce said that at this stage "only management positions will be made redundant".
The airline was responding to high oil and jet fuel prices and the impact of significant natural disasters in Japan, New Zealand and Australia, which have cost the company approximately $140 million.
"The significant and sustained increases in the price of fuel is the most serious challenge Qantas has faced since the Global Financial Crisis," Mr Joyce said.
"The price of Singapore Jet Fuel has risen from around US$88 per barrel in September 2010, to more than US$131 per barrel today. Qantas fuel costs for the second half of FY11 will be $2 billion.
"There has never been a time when the world faced so many natural disasters, all of which have come at a significant financial cost to the Qantas Group."
Qantas services between Perth and Narita will be suspended and up to four weekly Jetstar services from Australia to Japan will be cut.
Aircraft between Sydney and Narita will be downsized from a Boeing 747 to an Airbus 330, and two B767 planes will be retired early. Jetstar services in New Zealand including those to will also be downsized.
Domestic capacity growth will be cut from 14 per cent to eight per cent, with international capacity growth cut from 10 per cent to seven per cent.
Qantas has carried out a series of domestic and international fuel surcharge hikes this year, with further increases flagged.
Last week the airline announced that domestic fares will rise up to $10 a flight from the end of the month, on top of the five per cent hike in February.
www.couriermail.com.au
CONSUMER WATCH COMMENT: Qantas has always put profits ahead of its workers and the people of Australia. Alan Joyce is fast proving an unwelcome visitor to Australia, whose stewardship of Qantas makes Dad's Army look like a professional outfit. Flight cuts and staff cuts are the thin edge of the wedge which will ultimately see Qantas price itself out of the market with all the super cheap airlines offering cheaper fares more often with a smile and service to match.
