Australian airline group Qantas has reported a statutory loss
of AU$2.7 billion (£1.4 billion) for the 12 months to 30 June following “a near
total collapse in travel demand” and a $4 billion drop in revenue in the second
half due to the coronavirus and related border closures.
CEO Alan Joyce said the second half of the year – the height
of the crisis – “was the toughest set of conditions the carrier had faced in
its 100 years”. He claimed the company was “on track” to make another profit above
$1 billion before the crisis hit. However, the group said it is in a good
position to weather another predicted loss in FY21, with liquidity at $4.5
billion as of 30 June, including $1 billion of undrawn facilities.
Joyce commented: “The impact of Covid on all airlines is
clear. It’s devastating and it will be a question of survival for many. What
makes Qantas different is that we entered this crisis with a strong balance
sheet and we moved fast to put ourselves in a good position to wait for the
recovery.
“Covid is reshaping the competitive landscape and that
presents and mix of challenges and opportunities for us. Most airlines will
come through this crisis a lot leaner, which means we have to reinvent how we
run parts of our business to succeed in a changed market.”
Qantas is planning to finalise around 4,000 of “at least”
6,000 redundancies by the end of September and will continue to stand down
around 20,000 employees until demand returns. The group has retired its Boeing
747 fleet ahead of schedule and has more than 100 aircraft in storage.
The group doesn’t expect international travel restrictions
to ease to the point where operations can continue until July 2021, and
domestic demand remains low, with only 20 per cent of pre-Covid capacity
scheduled for August.
During the crisis, Qantas said it has collected around $267
million in JobKeeper payments from the Australian government, most of which was
paid to employees on furlough and the rest of which was used to subsidise the wages
of those still working. Up to 30 June, the group said it has received $515 million in government support with a net benefit after the cost of
operating flights equating to $15 million. Support to be provided in FY21 will
depend on the group’s flying activity, according to Qantas.
Joyce added: “Recovery will take time and it will be choppy.
We’ve already had setbacks with borders reopening and then closing again. But
we know that travel is at the top of people’s wish lists and that demand will
return as soon as restrictions lift. That means we can get more of our people
back to work.”