Qantas, Australia's struggling flag carrier, on Thursday unveiled a hefty pre-tax loss and said it would axe 5,000 full-time jobs, sell older aircraft and slash capital spending in the face of growing competition.
The airline, one of Australia's most iconic brands, issued a profit warning in December and has been seeking some form of assistance from the government.
Qantas, known as the 'flying kangaroo,' said it had a first-half underlying loss before tax of A$252 million ($224 million). That was at the bottom end of an A$250 million to A$300 million loss range Qantas warned that it would report.
"There are big changes taking place at Qantas, and undoubtedly big changes are needed," said Peter Harbison executive chairman at the CAPA Centre Aviation in Sydney.
"Everything that Qantas does will probably have to be changed next year to keep up with what's going on," he added. "Three or four new carriers from Southeast Asia are looking to come into Australia. These sorts of issues are going to require some flexibility."
(Read more: Who will fly to the help of Qantas?)