Australian airline carrier Qantas, hit by losses, announced a three-year, $1.8 billion cost-reduction program that will include cutting 5,000 jobs.
The airline on its website said it will take action to permanently reduce costs in all parts of the Qantas Group through 2017.
"More than 50 aircraft will be deferred or sold and the Group's workforce will be reduced by 5,000 full-time equivalent positions by (2017)," it said.
The airline reported an after-tax loss of (Australian) $235 million (U.S. $209 million) for the six months through December of last year.
"It's clear that the market Qantas operates in has changed, with structural economic shifts exacerbated by an uneven playing field in Australian aviation policy," Chief Executive Officer Alan Joyce said.
He said: "This is an unacceptable and unsustainable result. Comprehensive action is needed in response."
The CEO said Qantas' competitors have increased capacity to Australia by 46 per cent since 2009, more than double the world average, at a time of record fuel costs and economic volatility.
Although the company had met these challenges over the past four years, he said it was not enough to meet the current circumstances.
"Over the next three years, we aim to secure our strong Group domestic position and maximize Qantas International's competitiveness," he said.
After the job cuts, Qantas will have more than 27,000 employees, most of them based in Australia.
Original headline: Qantas cutting 5,000 jobs
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