Australia's national carrier Qantas Airways says it is yet to see substantial improvements in business conditions.
Chairman Leigh Clifford said in the company's annual report today that there was significant uncertainty surrounding an economic recovery.
"The global economic outlook remains uncertain and we are yet to see substantial improvements in
underlying business conditions," he said.
"Many factors are in play that could affect the timing of the recovery.
"Uncertainty is also being created through significant capacity increases, domestically and internationally, by Qantas Group competitors, some of whom enjoy very favourable taxation and other arrangements."
In August, Qantas announced a A$117 million ($144.9 million) net profit for 2008/09, down 88 per cent from the previous year.
Demand for flights has weakened in the second half of the financial year due to the economic slowdown, swine flu and increased capacity by on competitor carriers.
In response, Qantas announced plans to cut costs by A$1.5 billion over the next three years, starting with a target of $500 million this financial year.
Key components of the cost cutting plan include reconfiguring aircraft, including the superjumbo A380, technology advancements and fuel conservation.
Clifford said the Qantas group was well positioned to withstand the economic downturn and seize opportunities during a recovery.
Meanwhile, the annual report also showed former Qantas chief executive Geoff Dixon received a termination benefit of $657,500 as part of his total remuneration of $10.7 million for the period from July 1, 2008 to March 31, 2009.
On top of fixed pay of $1.86 million, Dixon also received $1.7 million in annual leave and $3.03 million in long-term benefits.
He received no cash incentives in the year, and his annual salary was down from $12.17 million in the previous year.
Current chief executive Alan Joyce, who was appointed in November 2008, received total remuneration of $3.6 million, including base pay of $1.7 million and share-based payment worth $1.2 million.
- AAP
