Qantas to invest in air freight, divest road freight to turn a profit

QANTAS plans to divest from road freight and invest in air freight, says company CEO Alan Joyce.

"Our capital expenditure requirements for 2012-13 are now at the lower level of $1.9 billion and will be at most $1.9 billion next financial year," Mr Joyce says.

"In the second half of 2011-12, we were cash flow positive by $200 million, meaning that our operation cash flows exceeded our capital investment requirements."

Mr Joyce says Qantas plans to continue to only invest in areas of the business that will generate sustainable returns, noting the company's divestment in Star Track Express and investment in air cargo as examples.

"We have divested our stake in the Star Track Express road freight business as we focus on our core portfolio," says Mr Joyce.

"Having worked closely with Australia Post to restructure our joint venture, we will generate more than $400 million in cash from the sale of Star Track Express and strengthen our cargo operations by integrating Australian Air Express."

The airline reported a $245 million loss for the 2011/12 financial year, which it attributed to industrial disputes and high fuel prices, and its international operation, Qantas International.