Qantas is slashing costs during the downturn
Qantas Airways has painted a gloomy picture of the airline industry, saying it has yet to see "any significant improvement in business conditions".
The Australian flag carrier said the global outlook "remains uncertain".
Last month, Qantas announced that its profits for the first half of the year had fallen by 88% to 117m Australian dollars ($101m; £62.4m).
The company has implemented a A$1.5bn cost-cutting programme in order to improve profitability.
Despite the difficult conditions, however, Qantas chairman Leigh Clifford said: "Qantas is well positioned to withstand this period of downturn and will be ready to grasp opportunities fully during the eventual recovery."
Airlines across the world have been struggling to cope with a big drop in demand for flying during the downturn.
Earlier this month, Iata, which represents the industry globally, estimated that airlines had have lost more than $6bn (£3.7bn) in the first half of 2009 - double its earlier estimate.