SYDNEY (Reuters) - Australia's Qantas Airways
Qantas shares rose almost 2 percent after the airline announced a string of cost cuts, including the suspension of some services from Australia to Japan and New Zealand.
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"We want to limit redundancies wherever possible and will be using a range of initiatives to manage the reduction in capacity including annual and long service leave. At this stage only management positions will be made redundant," Joyce said in a statement.
Qantas shares were trading 1.9 percent firmer at A$2.19 shortly after the market opened. Some investors had been expecting an earnings downgrade after rival Virgin Blue
Qantas did not give full-year earnings guidance but said a string of recent natural disasters would impact its underlying pretax earnings by about A$140 million ($144 million)in the second-half of the financial year ending June 30, 2011.
This included a A$45 million impact from the Japan earthquake and tsunami, A$60 million from flooding in Australia's Queensland state, A$20 million from cyclones in Queensland and A$15 million from last month's earthquake in New Zealand.
Qantas said it planned to cut domestic capacity growth in the second-half of the current financial year from 14 percent to 8 percent and international capacity growth from 10 percent to 7 percent.
Qantas and other airlines globally have been raising fares and introducing fuel surcharges to try and offset rising oil prices.
($1 = 0.972 Australian Dollars)
(Reporting by Michael Smith; Editing by Ed Davies)