Despite domestic customer satisfaction sitting at an all time high, the Australian flag carrier, Qantas has downgraded its profit earnings for the 2011/12 financial year, expecting a $450 million loss in earnings before interest and tax.

Citing structural issues, fuel and global economic factors for the fall from $216 million during the 2010/11 financial year, the airline’s chief executive Alan Joyce said the worsening environment further reinforced the importance of the carrier’s five-year growth plan.

For the financial year ending 30 June this year, the carrier is also expecting to see an underlying profit before tax between $50-$100 million as well as an EBIT of $600 million in Qantas and Jetstar’s domestic market.

Counteracting future losses, Mr Joyce explained the airline would “continue to practise disciplined financial management” including expenditure reduction of $900 million for 2012/13 to $1.9 billion.

“We have taken decisive action to mitigate losses in Qantas International by withdrawing from loss making routes, reducing capital investment, and transforming Qantas engineering,” Mr Joyce said.

“The introduction of a new Qantas Group structure with dedicated CEOs for Qantas International and Qantas Domestic will bring further rigour to our business.

“We remain focused on returning Qantas International to profitability in 2014 and for Qantas International and Domestic combined to exceed their cost of capital on a sustainable basis within five years of August 2011.”