Qantas results set to be hit high fuel prices and global slowdown

Qantas Airways's annual results will bear the brunt of high fuel prices and the global slowdown.

The company's net profits for the year to June are expected to be between stg£106.4m and stg£152.8m, down from stg£156m last time.

In March, Qantas warned that its earnings are likely to suffer from a weak Australian dollar and increased competition on domestic air routes.

Fewer people were taking domestic and international flights.

Salomon Smith Barney analyst Jason Smith suggests the company's results may reveal strong earnings growth at Qantas' subsidiaries.

There may also be higher volumes on international routes owing to the Sydney 2000 Olympic Games and a pick-up in traffic on its Asian routes.

Some analysts believe increased competition in the Australian market following the introduction of Virgin Blue and the now defunct Impulse Airlines will have eaten into Qantas's yields.