Qantas has announced it will split its loss-making international business from its domestic operations as key executives leave the company.

The departments will be managed as two separate businesses - Qantas International and Qantas Domestic - and will report their profit results individually.

Qantas's international arm has struggled as it faces increased competition and high fuel costs, while its domestic operations have continued to grow.

The move is part of a five-year plan announced in August last year to revive the international operations that also includes restructuring the network.

The company also announced that Jetstar chief executive Bruce Buchanan would leave after nine years with Qantas Group. He will be replaced by Jayne Hrdlicka.

Mr Buchanan says he wants to explore new opportunities and help other Australian companies expand into Asia.

Rob Gurney, head of commercial and freight operations for Qantas Group, also will depart.

Qantas chief executive Alan Joyce said the airline's domestic business remained strong and profitable, with high customer satisfaction, but the international business was unsustainable.

"Qantas International, a great airline with a rich history, is loss-making and does not deliver sustainable returns," Mr Joyce said.

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"However, we are committed to turning it around through the five-year strategy we announced last year, based on flying to global gateways, deeper alliances, smart investment in product and disciplined capital management.

"Formally separating the management of Qantas International and Qantas Domestic will ensure that we can independently run each business according to its specific priorities and market conditions."

The new structure will take effect from July 1 under the leadership of Mr Joyce.

Yesterday, Qantas confirmed it would slash 500 heavy maintenance jobs, with more cuts likely, as it consolidates its heavy maintenance operations.

Rival airline Virgin Australia says it will consider hiring engineers who lose their jobs in the restructure, which will see Qantas's facility at Melbourne's Tullamarine airport closed and a reduction of activity at its Avalon terminal in Victoria, with many positions shifted to Brisbane.

At 12:45pm (AEST) the Qantas share price was 0.8 per cent higher at $1.44.