Fuel puts deep hole in profits

QANTAS flagged the likelihood of big job cuts yesterday and left little doubt its troubled international offshoot, Australian Airlines, has an uncertain future.

It says it will slash costs and seek to offset a 58 per cent rise in fuel prices that left a $37.8 million hole in the airline’s first-half profit.

Qantas yesterday declared an after-tax result for the six months to December 31 of $352.6 million, down from 2004’s $390.2 million.

Managing director Geoff Dixon said profit projections were now made “with a fuel cost above $US60 a barrel”.

The Advertiser (Australia)