Qantas announces radical cuts but is it enough to ensure the Flying Kangaroo’s future?

THEY’RE the most radical cuts in its history but it’s a sign of the depth of the problems besetting Qantas that many will still ask: is it enough?

QANTAS is combating its toughest trading conditions in its history with the most radical job losses in its history.

But it’s a sign of the depth of the problems besetting the iconic airline that many will still ask: is it enough?

READ MORE: ALL THE DETAILS OF THE QANTAS CUTS

The Flying Kangaroo this morning confirmed 5,000 jobs will be slashed and remaining Qantas staff asked to accept a complete pay freeze to stanch profit losses.

Qantas bled $252 million in the last six months of last year, sustaining heavy losses on its international routes.

"Taxpayers would do well to return to their seats and ensure their seat belts are tightly secured: there is further turbulence ahead."

Customers will no longer be able to fly from Perth to Singapore direct as part of a wider overhaul of Qantas’ fleet and network.

There will be no change to capacity on flights to London, but more than 50 aircraft will be deferred or sold. Ageing 747s will be replaced with A380s while Jetstar’s remaining order of Boeing 787s has been deferred.

Of the 5,000 jobs to go by 2017, the majority — or 4,000 — will be out the door by next year.

Qantas CEO Alan Joyce has blamed record fuel prices, economic volatility, an aggressive bid for market share by lower cost competitors and an “uneven playing field in Australian aviation policy”.

Tough position ... Alan Joyce has a big job on his hand. Pic: Jack Tran.

But even Joyce today conceded the profit loss was “unacceptable and unsustainable”.

There is no word yet on what assistance Qantas has managed to secure, if any, from the Federal Government. It has asked for a repeal of the Qantas Sale Act and a taxpayer guarantee of its debt.

But today’s results suggest taxpayers have good reason to be cautious.

READ MORE: THE FULL QANTAS FINANCIAL REPORT

Joyce is offering no forward profit guidance on when the airline will return to profitability, while also warning of “very challenging and volatile” conditions ahead.

Taxpayers would do well to return to their seats and ensure their seat belts are tightly secured: there is further turbulence ahead.

*Jessica Irvine is National Economics Editor

Heading in the right direction? ... Qantas has announced radical cuts. Pic: Scott Barbour.