Qantas is to split its loss-making international business from its domestic operations.
The departments will be managed as two separate businesses - Qantas International and Qantas Domestic - and will report their profit results individually.
Qantas's international arm has struggled as it faces increased competition and high fuel costs, while its domestic operations have continued to grow.
The ABC reports the new structure will take effect from 1 July.
The move is part of a five-year plan announced in August last year to revive the international operations.
On Monday, Qantas confirmed it would slash 500 heavy maintenance jobs with more cuts likely, as it consolidates its heavy maintenance operations.
In February, the airline announced an 83% slump in half-year profit to $A42 million.