Sydney - Leading Australian airline Qantas Airways on Wednesday announced it would shed jobs, close routes and sell aircraft in the face of rising jet fuel costs.

"The fact is that fuel prices are something we have no control over, so we have to look harder at areas where we do have control," Qantas chief executive Geoff Dixon said in a statement.

"Despite our fuel hedging strategy, fuel surcharges, two separate across-the-board fare increases and a recruitment freeze, we are not bridging the widening gap between the actual increase in the cost of fuel and the amount we offset."

Dixon, who said fuel now represented 35 per cent of the annual expenditure, also announced a pay freeze for senior staff.

Qantas will retire one B737 aircraft, ground two B767s and one A320 in the fleet of its Jetstar subsidiary. Jetstar will cancel an order for an additional A321.

Qantas, along with other Australian airlines, confirmed last week that the duration of flights was increasing as jets reduced speed to conserve fuel. (dpa)