Qantas not likely to restart international flights until 2021
The Australian airline has said that the effects of the pandemic mean it’s unlikely to recommence international flights until July next year
In a statement on 20 August, the Qantas Group confirmed that it had suffered a AU$2.7-billion loss for the financial year that ended in June and a 91-per-cent drop in profit – to $124 million – for the 12 months to 30 June 2020. It blamed a ‘near total collapse in travel demand’ due to the travel lockdowns put in place to stop the spread of Covid-19.
Group Chief Executive Alan Joyce said the conditions that carrier had been faced with this year had been the worst in its 100-year history. As a result, the group remarked in its trading update that its international network – with the exception of trans-Tasman operations to New Zealand – was ‘unlikely to restart before July 2021’.
Qantas will continue to furlough around 20,000 employees across the group, but also expects around 6,000 planned redundancies to be finalised by the end of September. Other efforts to shore up its financial position include bringing forward the retirement of its Boeing 747 fleet, placing more than 100 aircraft in long-term storage, and raising equity funds to boost liquidity.
“The impact of Covid-19 on all airlines is clear,” said Joyce. “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.”
Although the road ahead looks set to include more obstacles, the group is optimistic about its long-term goals. “Recovery will take time and it will be choppy,” said Joyce. “We’ve already had setbacks with borders opening 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. Covid-19 will continue to have a huge impact on our business and we’re expecting a significant underlying loss in FY21. Looking further ahead, we’re in a good position to ride out this storm and make the most of the recovery.”