Jetstar to cut capacity by 10% in January as pilots take industrial action

SYDNEY (Reuters) – Budget airline Jetstar said on Monday it would cut domestic capacity by around 10% in January due to industrial action by pilots and it was considering the sale of three Boeing Co (BA.N) 787-8 jets serving loss-making international routes.

The Qantas Airways Ltd (QAN.AX) subsidiary said the financial impact of disruptions by pilots and ground staff in December and January was estimated to be around A$20 million ($13.57 million) to A$25 million and had led it to do a broader review of its fleet and network, including its 787-8s.

“There’s no doubt that industrial action is expensive and frustrating, but we have to hold the line on costs or it threatens the long term sustainability of our business,” Jetstar Group Chief Executive Gareth Evans said in a statement.