Australia's Qantas posts H1 loss, cutting 5,000 jobs

SYDNEY, Feb 27 (Reuters) - Qantas Airways Ltd reported just its second half-yearly loss since privatisation on Thursday, and said it was cutting 5,000 jobs as it faces tough competition in both its international and domestic operations.

The underlying loss before tax of A$252 million ($225.83 million) was at the bottom end of the A$250 million to A$300 million loss the airline warned last month it would report for the six months to December, and compared with a A$220 million profit in the previous corresponding half.

The job cuts, plus a A$1 billion reduction in capital spending, and moves to reduce its fleet more by than 50 aircraft announced on Thursday, are part of the airline's plans to slash costs by A$2 billion over the next three years. Qantas is seeking to prove it is taking action to improve its struggling business and gain financial assistance from the federal government.

($1 = 1.1159 Australian dollars)

(Reporting by Jane Wardell)

((jane.wardell@thomsonreuters.com)(+61 2 9373 1817)(Reuters Messaging: jane.wardell.thomsonreuters.com@reuters.net))

Keywords: AUSTRALIA QANTAS/EARNINGS