Embattled Australian carrier Qantas said Thursday it will slash at least 500 jobs, cut costs and close two routes after posting an 83 percent slump in first half net profits.
The airline's result in the six months to December came in at Aus$42 million ($US44.8 million), compared to Aus$241 million in the previous corresponding period, due to high fuel costs and the grounding of its fleet in October.
"We anticipate there will be 500 positions affected by the immediate changes that we have announced today," Chief executive Alan Joyce said, but made clear no jobs would be going offshore, a key gripe of unions.
However, he foreshadowed further job losses following reviews of its catering and heavy maintenance operations.
The government acknowleged that Qantas faced challenges competing with airlines overseas that have a lower cost base but warned vital skills could be lost forever if maintenance jobs went.
The airline will also axe unprofitable services from Singapore-Mumbai and Auckland-Los Angeles in May with Joyce saying the airline must "confront the new global realities" and adapt.
"Looking forward, while the global economic situation remains volatile, we remain cautiously optimistic about the demand environment, both domestically and in the Asia-Pacific region," he said.
"Looking forward, while the global economic situation remains volatile, we remain cautiously optimistic about the demand environment, both domestically and in the Asia-Pacific region," he said.