Qantas cuts 5,000 jobs, ends Perth-Singapore route
SYDNEY (AFP) - Struggling Australian carrier Qantas on Thursday said it will take measures including cutting 5,000 jobs and ending its Perth-Singapore route in a major shake-up after a first-half net loss of A$235 million (S$267 million), warning of more pain ahead.
The airline, battling record fuel costs and fierce competition from subsidised rivals, is working to slash costs by A$2 billion over three years as it faces some of its toughest ever conditions.
The carrier's underlying loss before tax in the six months to December 31 - the airline's preferred measure of financial performance - came in at A$252 million, a figure chief executive Alan Joyce called "unacceptable and unsustainable".
"Hard decisions will be necessary to overcome the challenges we face and build a stronger business," said Mr Joyce, who will take a 36 per cent wage cut.