16 Jun 2011

Qantas cuts domestic growth forecast

2:06 pm on 16 June 2011

Qantas has cut its forecast for domestic growth as it faces various problems, including the continuing disruption due to volcanic ash.

Australia's national carrier expects domestic capacity to grow by just 5.5% this year compared with the previous estimate of 8 percent growth.

Because growth has been slower than expected, it plans to reduce its capital expenditure by $A400 million dollars and cancel or defer orders for 12 narrow-body aircraft.