The national carrier Qantas has announced it will shed 1,000 jobs as it overhauls its international business to try to return it to profitability.
Qantas says it will significantly reduce its capital in the loss-making international unit, and invest in a new premium full-service airline based in Asia under a new brand and introduce Jetstar Japan next year.
It has also flagged further announcements in the coming months and reaffirmed its earnings guidance.
At 11.40am, shares in Qantas were up 3.9% to $1.59, after reaching a two-year low last week.
Chief executive Alan Joyce, formerly the head of low-cost offshoot Jetstar, told the market in a statement that doing nothing, or tinkering around the edges, is “not an option”.
Shares in Westpac Banking Group have fallen after the lender posted a 2% fall in third-quarter earnings to $1.55 billion, underpinned by cautious economic conditions.
In a statement, Westpac chief executive Gail Kelly said the bank is “operating from a position of strength” but the June quarter saw “the operating environment become more subdued with consumers increasingly cautious and larger businesses continuing to de-leverage.”
“This was reflected in slowing system credit growth in the quarter, and weaker markets,” Kelly said.
Tabcorp has recorded a 14% increase in full-year net profit, with the company also saying it expects to pay 50% of its 2012 net profit in dividends.
Profit was $534.8 million from $469.5 million, beating expectations.
“Tabcorp looks forward to a successful launch of Victorian Keno in April 2012 and a smooth transition to the new Victorian Wagering and Betting Licence in August 2012,” it said.
“We will continue to develop the businesses through our investments in new technology, self-service terminals, strengthening our retail footprint, a new online wagering platform and expanding wagering products into the retail network such as live betting and Trackside.”
Chief executive David Attenborough said the business continued to have “momentum”, while chairman Paula Dwyer said the previous year had been one marked by change.
“The last 12 months have also been significant with the company winning a number of long-dated licences, which in turn has secured the long-term future of the group,” he said.
The Reserve Bank of Australia balanced slowed credit growth combined with softened asset prices and the high Aussie dollar against the prospects of international economic turmoil infecting Australia, and decided it was prudent to leave rates on hold, according to notes from this month’s meeting.
In its statement released this morning, the central bank said it decided this month to continue to assess the outlook for growth and inflation at future meetings.
Rates have been steady at 4.75% since last November.
The Australian sharemarket has opened stronger this morning after Wall Street stocks recorded a 2% rise overnight, boosted by the announcement that search giant Google would buy smartphone manufacturer Motorola Mobility for $US12.5 billion.
The benchmark S&P/ASX200 index was up 10 points or 0.24% to 4293.3 at 12.10 AEST, while the Australian dollar remained steady at $US1.04c.
AMP shares rose 1.21% to $4.17, while Commonwealth Bank shares lost 1.18% to $46.82. NAB shares lost 1.06% to $23.32 as ANZ fell 0.44% to $20.56.
In the United States, the Dow Jones Industrial Average rose 213.88 points or 1.9% to 11,482.90.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
