Qantas has slashed its projected rises in domestic and international capacity and will axe management jobs in a further and urgent reaction to the natural disasters in Queensland, New Zealand and Japan and continued rises in fuel costs.

However the statement to the ASX avoids putting a figure on what looks like a situation in which it  could follow Virgin Blue into loss at least in this second half the financial year.

It has also pulled back the ambitious capacity increases announced earlier this year and back in August after last year’s full year financial results conference.

Joyce and Jetstar Group CEO Bruce Buchanan, will both return to the Senate Inquiry into pilot training and airline safety standards tomorrow morning in a public hearing in Canberra.