In a bid to turn international profits around, the Australian flag carrier has announced the cancellation of up to 35 Boeing 787-9 aircraft deliveries as part of a major fleet restructure that aims to reduce the airline’s expenditure.

The announcement comes alongside news of the carrier’s $244 million statutory loss in profits after tax for the full financial year 2011/12 and will see the airline cancel the 35 aircraft while retaining and moving forward the delivery date of 50 Boeing 787-9 by almost two years.

The delivery of 15 Boeing 787-8 aircraft to Jetstar would also remain in place and would enable the transfer of A330 aircraft from its low-cost subsidiary to Qantas domestic and to the eventual retire of Qantas’ Boeing 767 fleet.

The airline Group’s chief executive Alan Joyce described the cancellation of aircraft deliveries as a “prudent decision” and expects changes to result in a total cash inflow of up to US$433 million in 2012/13 as well as a net impact of underlying profits before tax of up to US$140 during the first half of 2012/13.

“The B787 is an excellent aircraft and remains an important part of our future,” Mr Joyce said.

“However, circumstances have changed significantly since our order several years ago.

“It is vital that we allocate capital carefully across all parts of the Group.”

Mr Joyce added at a press conference in Sydney that the airline’s focus on maintaining a “younger fleet” would be “more efficient, attractive to customers, and internationally competitive”.

Earlier today the airline also announced it has experienced a statutory loss after tax of $244 million for the full financial year 2011/12 which resulted in an underlying profit before tax of $95 million.

Click here for more information.