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Qantas cuts costs amid declining profits

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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Jessica Stanic

Jessica Stanic

Jessica has a background in both marketing and journalism and is dedicated to making the website the leading online resource for small to medium businesses with ambitions to grow.

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