Qantas Airways – Australia’s biggest and world second oldest airlines plans to cut first-class cabins on most routes after a demand for the first-class and most expensive seats fell leading to a 72 per cent drop in first-half 2009-10 business year profit. The carrier fell more than 8 per cent in earlier trade after the company reported a net income of A$58 million ($52 million) in the six months ended December 31, compared to A$210 million in the year-earlier period.
Revenues were also down by 14 per cent to A$6.9 billion dollars, from the corresponding period a previous year. The airline will also undertake A$400 million project to modify seats and improve in-flight experience, next year.
“According to IATA, the world’s airlines will record net losses of $5.6 billion in 2010,” the chief executive, Alan Joyce, said in a statement. “While the operating environment has been unprecedented and challenging, this result reflects the strength and diversity of our operations.” Joyce took refuge in weaker demand and lower fuel surcharges to justify poor how, but said the airline expects to end the year with underlying profit of A$300-A$400 million.