=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/05/06/f= inancial2022EDT0376.DTL ---------------------------------------------------------------------- Tuesday, May 6, 2003 (AP) Australian carrier downgrades profit forecast, citing SARS travel slump MIKE CORDER, Associated Press Writer (05-06) 21:10 PDT SYDNEY, Australia (AP) -- Qantas Airways announced additional cost-cutting measures and further downgraded its profit forecast on Wednesday, blaming a slump in passenger numbers caused by the SARS virus. Qantas didn't quantify the latest downgrade. In March, Qantas said net profit for the year ending June 30 will be 15 percent lower than market expectations of 594 million Australian dollars ($380 million). Chief executive Geoff Dixon said the impact of severe acute respiratory syndrome over recent weeks had affected all areas of the airline's operations. "While our international and domestic airlines have been worst hit, there has also been a flow through to all our subsidiaries including Qantas Flight Catering, Qantas Holiday and Australian Airlines," Dixon said in a statement. Dixon said Qantas would widen a range of cost saving initiatives includi= ng laying off more staff. Last month the carrier announced it would lay off 1,000 of its 35,000 workers and cut international flights by 20 percent. There would also be significant restructuring of work practices and activities and the reduction of capital expenditure, including retirement of some aircraft and deferral of delivery of new aircraft. "All international routes have been affected to some degree, with key Qantas destinations of Hong Kong, Singapore and Japan suffering the most," Dixon said. Qantas' bookings to Hong Kong are down 64 percent and Japan bookings are down 30 percent. "We now only operate seven of the 30 services per week we planned to operate to Hong Kong before the war in Iraq and the outbreak of SARS," Dixon said. =20 ---------------------------------------------------------------------- Copyright 2003 AP