High fuel prices and natural disasters force Qantas to cut capacity

High fuel prices and natural disasters force Qantas to cut capacity

Qantas has announced that it will introduce a range of cost cutting initiatives this year in response to the rise in high jet fuel prices and the impact of the natural disasters in Japan, New Zealand and Australia. Alan Joyce, the airline’s CEO, said the measures included capacity reduction, retirement of aircraft, job cuts in management and more fuel surcharges. “There has never been a time when the world faced so many natural disasters, all of which have come at a significant financial cost to the Qantas Group. We need to act decisively to respond to rising fuel costs and natural disasters,” said Joyce. Qantas said it will reduce domestic capacity growth in the second half of 2011 from 14 percent to 8 percent, while international capacity growth will be cut from 10 percent to 7 percent. Both Jetstar and Qantas will cut Japan services, while Jetstar will reduce its New Zealand domestic flights. The group will also retire two Boeing 767s earlier than previously intended.

Mark Elliott
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Mark Elliott
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