Qantas plans to further cut 2,500 ground staff jobs

Canberra: Australian flag carrier Qantas on Tuesday announced another 2,500 job cuts as it plans to outsource ground handling services at major airports.

Qantas said it is proposing to outsource various ground operations roles, including baggage handlers, aircraft cleaners and bus drivers, impacting nearly 2,500 roles in total, reports Xinhua news agency.

The airline has already flagged 6,000 job losses in June in a bid to cut costs amid the ongoing Covid-19 pandemic.

It said the latest announcement followed a statutory loss of A$2.7 billion ($1.94 billion) for the Group in FY20, and a revenue drop of A$4 billion in the second half due to the health crisis and border restrictions.

"We've already taken drastic action, with more than 220 aircraft grounded, the vast majority of our workforce stood down and assets mortgaged to raise cash," Qantas Domestic CEO Andrew David said.

"Right now, our domestic capacity is at 20 per cent of pre-coronavirus levels and international travel is expected to take years to recover."

He said outsourcing the work to specialist ground handlers would save around A$100 million each year.

The airline will speak to its employees and unions on the plan.