MELBOURNE, AUSTRALIA - AUSTRALIA'S biggest airline, Qantas Airways, is reviewing its flight operations, which could lead to more job cuts, capacity cuts and higher ticket prices, an Australian newspaper reported.

Citing a memo to Qantas staff, The Age newspaper said on Wednesday details of the review would be released next week.

'The continuing increase in the price of oil has necessitated a further in-depth review of all aspects of the Qantas Group, particularly how our flying businesses will operate in this new cost environment,' the memo from Chief Executive Geoff Dixon was quoted saying.

He said oil prices above US$140 (S$189) a barrel had changed the way Qantas did business forever.

Qantas expects to decide in August whether to float a stake in its frequent-flyer programme.

It has already cut routes, frozen executive wages and cut jobs while battling striking aircraft engineers over a long-running dispute, with engineers pressing for an average 5 per cent pay rise. -- REUTERS