Australian airline Qantas joins the growing list of airlines affected by the global credit crunch.

Qantas has slashed its annual profit forecast and announced further job losses in a bid to weather the global financial crises.

The Australian airline has revised its full year pre-tax profit to between AUS$100 - $200 million, (£50 - £100m) less than half its original forecast of AUS$500m (around £246m) in November 2008. According to Qantas Chief Executive Alan Joyce, this follows an “accelerated decline in passenger demand and revenue while market competition has accelerated”. The final figures are expected in June 2009.

In addition, it said it will ground the equivalent of 10 aircraft and make them available for sale in a bid to raise revenue.

In a statement released today, the company also announced plans to cut around 1,750 jobs – 500 management positions and up to 1,250 equivalent full-time positions. 

The job losses follow two previous announcements that the airline would be cutting up to 1,500 jobs worldwide and up to 90 management positions.

Mr Joyce continued: “We have no choice but to lower our profit forecast and make major changes to ensure Qantas can weather the current commercial environment.” 

This news also follows the bleak prediction by the International Airline Transport Association (IATA), as reported by ICM in December 2008, that the airline industry as a whole would experience a $2.5 billion loss in 2009 – click here to read the full article.