The company says it expects a 6 months loss of between $250m and $300m.
Qantas CEO Alan Joyce told the stock market in a statement that circumstances demanded urgent action.
“We will do whatever we need to do to secure the Qantas Group’s future,” Mr Joyce said.
“The challenges we now face are immense – but we will overcome them and we will continue to build a
stronger and better Qantas for Australia.
The company says trading conditions deteriorated markedly in November with a steeper decline passenger loads and yields.
“Since the Global Financial Crisis, Qantas has confronted a fiercely difficult operating environment – including
the strong Australian dollar and record jet fuel costs, which have exacerbated Qantas’ high cost base.
The company also flagged a pay freeze and 2014 bonus freeze for executives as well as other overhead reductions and a spending review.
It will also launch a review to look at capital expenditure and the airline's structure to identify potential sources of capital.
Mr Joyce said the airline was facing the toughest market conditions it had ever faced.
"We will focus relentlessly on cutting costs and improving productivity, while maintaining our competitive advantages as a business, Mr Joyce said.
The Australian Greens say there's a good case for federal government intervention to support Qantas, but only if it benefits taxpayers.
Qantas has announced it will axe one thousand jobs in the next 12 months, after forecasting a half-year pre-tax loss of between 250 million and 300 million dollars.
The airline's financial troubles have again sparked talk of a possible government bailout, following Treasurer Joe Hockey's recent call for a debate on the airline's foreign investment
restrictions.
Greens deputy leader Adam Bandt says while he believes there's a good case for government intervention, it has to be done on the basis of securing jobs and value for taxpayers. Mr Bandt also wants the government to find out why the airline's losing so much money.
