Qantas slashes profits forecast

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Qantas Airways has cut its profit forecast by more than half and says it will have to make job cuts in order survive the economic downturn.

The Australian airline said full-year profits would be between 100m ($72.8m; £49m) and 200m Australian dollars, down from its previous forecast of A$500m.

It also said 500 management positions would be cut, with a further 1,250 jobs also under threat.

The airline has been struggling with falling demand during the downturn.

"Market conditions have deteriorated, especially in our international business," said chief executive Alan Joyce.

"We have no choice but to lower our profit forecast and make major changes to ensure Qantas can weather the current commercial environment," he added.

He also warned that the difficult trading conditions would "continue for some time."

The airline has also been forced to defer orders for new planes.

Last month, Qantas announced that 90 senior management positions would be cut.

This comes on top of 1,500 job cuts announced last year.