Qantas plans to slash A$1b off its debts by next fiscal year

[SYDNEY] Qantas Airways Ltd chief executive Alan Joyce said the Australian carrier plans to cut debt by more than A$1 billion (S$1.17 billion) by fiscal 2015 to strengthen its balance sheet amid intensifying competition that has squeezed it into losses.

The airline plans to reduce debt by streamlining its fleet of aircraft, scaling back investment and selling assets, Mr Joyce said yesterday in a presentation at an investment conference in Sydney. He said Qantas expects to cut gross debt to less than four times of adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) by fiscal 2017.

Qantas said in February that it would cut 15 per cent of its workforce, reduce spending and sell less fuel-efficient, older planes after posting what was only its second half-yearly loss since privatisation two decades ago.