Qantas will delay the delivery of two A380 planes by almost four years as it announced fresh spending cuts in a bid to streamline its operations.
The airline said it would reduce its capital expenditure by a further 400m Australian dollars ($410m; £254m) this year.
Qantas had announced cuts of A$500m in February.
Its profits fell 83% in the the six months to December amid rising costs and a slowdown in international routes.
"We are in a good position to reduce capital expenditure, targeting investment at business areas that deliver sustainable returns while maintaining flexibility in forward fleet commitments," Alan Joyce, chief executive of Qantas said in a statement.
The two planes, which were due early next year, will now be delivered in 2016 or 2017, the airline said.
Qantas has been shifting its focus on increasing its share of the domestic market in a bid to offset the decline in its international operations.
The airline, which has 65% share of the Australian market, announced plans to further boost that.
The carrier said it will increase the number of flights during peak hours on key routes between Sydney, Melbourne and Brisbane.
It will also increase the capacity of its low-cost carrier Jetstar on certain routes.
"Our goal in the domestic market remains simple and consistent: we intend to retain the market share that enables us to maximise profit," said Mr Joyce.