[SYDNEY] Struggling Australian carrier Qantas yesterday said it was committed to slashing costs by A$2 billion (S$2.3 billion) but refused to confirm or deny a report that it will axe 5,000 jobs.

The airline has been battling record fuel costs and fierce competition from subsidised rivals and in December said 1,000 jobs would go while warning that it faced a half-year loss of up to A$300 million.

Its interim result is due tomorrow and the Sydney Daily Telegraph, citing a Qantas source, said the job losses would be much worse as the airline restructures its finances to convince the government it deserves a debt guarantee.