SYDNEY, Oct 31 (Reuters) - Qantas Airways Ltd, QAN.AX , Australia's No. 1 airline, said it expected underlying first-half net profit to fall up to 13 percent as it slashes costs to cope with declines in international airfares.
In its first-quarter earnings report, Qantas said it expected underlying profit before tax of between A$800 million ($607 million) and A$850 million for the six months to Dec. 31, 2016, compared with A$921 million for the same period a year earlier.
"Like most carriers globally, we are seeing international airfares below where they were 12 months ago," Qantas Chief Executive Officer Alan Joyce said in a statement.
"The impact of that is tempered by the competitive advantages we've been working hard to fortify, including our strong domestic position and diversified loyalty business."
($1 = 1.3172 Australian dollars)