Qantas plans to embark on a major cost cutting scheme, after reporting a 90 percent plunge in profits.
The air carrier reported a net profit of $117 million for the year ending June 30, down from $969 million on the previous year.
In an effort to get out of the red and back in positive territory, Qantas will embark on a $1.5 billion cost reduction program called Q Future.
Qantas chief executive Alan Joyce said in a statement on Wednesday that Q Future will focus on, “Qantas operations and improving efficiencies across a range of areas, including sales and distribution, fuel conservation, aircraft utilisation and schedule, and procurement.”
Joyce said the three-year cost-cutting plan is expected to realise $500 million in cuts this financial year, which would include job and aircraft capacity reductions along with savings in IT.
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