19 Aug 2009

Qantas profit plunges 88%

9:44 pm on 19 August 2009

Australian airline Qantas has reported an 88% plunge in annual profit because of the slump in air travel.

The company made a pre-tax profit of $A181 million in the 12-month period to June.

It says passenger demand within Australia and abroad fell because of the global recession, forcing it to cut flights and planes from its schedule.

Chief executive Alan Joyce estimates that the swine flu outbreak cost the airline $A45 million.

The airline sector has been cutting capacity and jobs to deal with the slump in business and holiday travel in the worst global recession in decades.