Qantas is to boost domestic routes and delay the delivery of two Airbus A380 planes in a bid to curb costs.
The Australian carrier said on Friday that it would not take delivery of the A380s as scheduled in 2013 to help cut capital expenditure by A$400 million.
Instead, the aircraft will arrive during the 2016-17 fiscal year, reports the Financial Times.
To defend its 65% domestic market share from a growing Virgin Australia, Qantas said it would add services on the "Golden Triangle" routes connecting Sydney, Melbourne and Brisbane, and reintroduce 747 jumbo jets on its Sydney-Perth route.
Qantas has set a target of 2012 for returning its international business to profitability. It lost A$200m in the last financial year.
Chief executive Alan Joyce added that the airline, which faces fierce competition on its international routes from Asian and Middle East based competitors, would announce by the middle of the month which of its three heavy maintenance bases in Australia it will close.
In February the airline deferred for six months the delivery of the first of 50 Boeing 787 Dreamliners it had ordered.
That was part of a $700 million capital expenditure reduction. The planes are now due to arrive in mid-2013.
