Qantas has announced it will delay the delivery of two of its Airbus A380 aircraft on order by at least four years and indicated that more delays or cancellations could happen. In announcing the decision, the airline cited that it wanted to streamline its operation and make existing operations more profitable.
In the cuts announced, it said it will shave off another $410 million ($400 million Aus dollars). It had previously announced a $500 million in the cut in February.
Qantas has suffered a significant decline in profits in the six month period June to December of 2011, with profits falling 83% and load factors on international routes were below breakeven.
Alan Joyce, chief executive of Qantas said, “We are in a good position to reduce capital expenditure, targeting investment at business areas that deliver sustainable returns.”