Qantas ends six-months with $3.52bn in cash; targets capex cuts

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Qantas ended the six-months to 31 December with cash reserves of A$3.3 billion ($3.52 billion) and is taking steps to further reduce its capital expenditure this year.

In an earnings statement today, Qantas reduced its projected capital expenditure to A$2.3 billion from A$2.5 billion for 2012. It also cut its expenditure to A$2.3 billion from a projected A$2.8 billion for 2013 "with further cuts to be identified for that year."

Qantas indicated the savings will come from a range of initiatives including cutbacks in non-aircraft spend, deferrals of Boeing 787-8 aircraft, capacity growth cuts, and a "capital-lite model for any premium airline investment in Asia."

The airline said it has "access to a broad geographic spread of funding sources, and a A$300 million undrawn standby debt facility" with the majority of its 2012 group funding requirements in place.