Qantas could cut jobs, lower profit forecast

Qantas has reportedly started axing jobs ahead of a possible profit downgrade this week.

Fairfax newspapers reported 14 QantasLink check-in staff at Newcastle Airport were told they would be out of jobs in two weeks on Monday after Jetstar outsourced its passenger service contract to baggage handler Skystar.

Talk has mounted that Australia's biggest airline has plans to cut thousands of jobs and expand its overseas staff base in a bid to cut costs.

The Australian Services Union says the Newcastle job losses could be the start of a large job culling program.

And the talk of a profit downgrade has increased with Qantas chief financial officer Peter Gregg arranging an analysts briefing on Friday on International Financial Reporting Standards.

- AAP