News: Qantas puts a knife to spending

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Qantas Airways Limited (ASX:QAN) has put a knife to its spending, announcing it will cut an extra $400 million in the next financial year by delaying the delivery of new aircraft.

Australia’s largest airline now expects its capital expenditure to be $1.9 billion in the 2013 financial year, down from the original $2.3 billion that was planned. 

The delivery of two Airbus A380 superjumbos is expected to be delayed from the 2013 to 2017 financial year.

CEO Alan Joyce says the airline’s priorities are to build on its domestic business, enhance its loyalty program, turn around its international division and grow its budget division Jetstar in Asia.

Qantas has also today flagged plans to boost capacity on domestic Qantas, Jetstar and QantasLink routes in order to expand into the business and leisure markets.

Qantas booked a net profit of $42 million in the first half of its 2012 financial year.