**Qantas Airways says it is cutting first class seats from all but a few routes after reporting a 72% drop in profits.**Net income for the six months to 31 December 2009 was 58m Australian dollars ($52m; £33m), down from A$210m a year before.
The company blamed the figures on a drop in customer demand and said it was scrapping dividend payments.
But chief executive Alan Joyce said he was pleased the airline had remained in profit, unlike other carriers.
“While the operating environment has been unprecedented and challenging, this result reflects the strength and diversity of our operations,” he said in a statement.
However, shares in Qantas closed down 8.1%, at A$2.73, after the release of the results.
Qantas said passengers would only be able to fly first class between Australia and London, via Singapore, and between Australia and Los Angeles, because of a drop in demand in the wake of the worldwide economic downturn.
The company also announced it would invest A$400m to upgrade seats and in-flight entertainment on nine aircraft.