Australian airline , Qantas Airways estimates that the company will post a big loss in the first half of next year , in addition to the potential of selling the assets and massive spending cuts , including laying off about 1,000 workers ..
The news sparked a slump in its share price up 17 % on Thursday , amid weak demand and rising fuel prices . Qantas was caught in a price war with competitors from domestic , Virgin
Australia , and was forced to reproduce the flight schedule in order to maintain market share in Australia .
" The international market of Australia is the toughest in the world , " said Director of Qantas Airways , Alan Joyce . " We face a huge challenge , but all of it will be going through. "
Qantas predicts pre-tax loss in the six months to December at between A $ 250 million to A $ 300 million . In the same period last year , Qantas made a profit of A $ 223 million ..
International Air Transport Association also revised its profit forecast throughout the Asian airlines to $ 3.1 billion from $ 4.6 billion as rising oil prices and slower growth in the air cargo market .
Sharp losses were offset by profits achieved Qantas domestic business support through the growth of the mining sector .
In the domestic realm , the business increasing pressure because of the booming resources sector eased and Virgin Australia heat up competition with the support of three shareholders SOE : Air New Zealand , Singapore Airlines , and Etihad Airways .
See signs of deterioration of the situation in the body Qantas , Australia last month to increase the possibility of removing the ban on foreign ownership in the airline in order to get foreign capital .(WSJ)
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