Qantas’ profits down 9.6%, more job cuts loom

Qantas’ profits down 9.6%, more job cuts loom    Qantas Airways warned that more job losses are coming as record fuel costs saw its net profits for the first six months of its fiscal year ending June 30, dropping 9.6 percent to A$352.6 million ($259 million).
   In the comparable year earlier period, the Australian airline posted a net profit of A$390.2 million ($287 million).
   Revenue for the half-year period was A$6.85 billion ($5.04 billion), an 8.5 percent increase from A$6.30 billion a year ago. Revenue from cargo improved 27 percent to A$462.8 million ($340 million) from A$364.3 million.
   The airline’s fuel costs in the six months jumped 58 percent to A$1.35 billion ($993 million).
   Qantas has cut about 600 jobs and achieved A$1.27 billion ($934 million) in savings as part of its three-year “sustainable future” plan, due to end June. The airline aims to save another A$1.5 billion ($1.1 billion) by the end of 2008.
   “The fundamentals of Qantas are strong and we are one of the more competitive airlines in an industry where competition is distorted, whatever some may think, by widespread government ownership of national-flag carriers,” said Geoff Dixon, Qantas’ chief executive officer.
   “However, without the efforts of the past we would not now be able to report today’s profit. But more is required. As we make these changes, job losses across various areas of the business will be inevitable. Importantly, job growth will also occur in other areas as our major investments grow the company,” said Dixon.
   Looking ahead, the company expects the high cost of jet fuel to further shrink its profits. “While further reforms in the business are under way, and coupled with the high fuel price, we do not expect to achieve the same levels of profitability in the current financial year,” Qantas said.