Balance sheet strong - Joyce
Qantas will not cut capacity further or axe more jobs to help it weather the current industry crisis, reports said today (May 27).
The Australian airline last month predicted a second half loss of A$188m (€106m), its worst result in six years.
The results prompted Qantas to announce a 5% cut in capacity and the shedding of 1,750 staff in a bid to reduce spending this year.
But Qantas' ceo Alan Joyce told reporters the airline's outlook had since improved.
"We have built up our cash balances and our plans going forward have deferred capital expenditure," Mr Joyce said.
"We have used those other mechanisms to make sure that Qantas has sufficient balance-sheet strength to get through our view of the current environment."
The airline industry has suffered from a wide-spread fall in demand as travellers down-size or stop flying all together.
British Airways, which last year ended merger talks with Qantas, last week reported a pre-tax loss of £401m (€461m).
In February Qantas raised A$500m (€282m) through the sale of new shares. The airline may again seek help from the market.
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