Sydney: Australian airline Qantas announced a $ 5.5 billion drop in revenue during the second half of 2020 and said international passenger flights will not resume until October as the pandemic continues to devastate the industry.
The country’s largest airline said it incurred a substantial loss of A $ 1.1 billion in the six months to Dec. 31, with statutory losses rising to A $ 1.47 billion.
“These numbers are stark, but they won’t be a surprise,” said Alan Joyce, Qantas CEO.
“A year ago, none of us knew the impact of Covid on the world or on aviation. Obviously, it is worse than anyone expected.
“The border closures mean that we have lost nearly 100% of our international flights and 70% of our domestic flights – Three-quarters of our revenue – Around 7 billion Australian dollars – Went with it. “
Joyce noted that the company has already seen a decrease in revenue of A $ 4 billion during the first half of 2020, bringing the total impact of the epidemic to A $ 11 billion.
“This is an enormous number, and perhaps a greater number than any other company in Australia is seeing due to Covid,” he said at a press conference.
Joyce has postponed the expected resumption of international passenger flights from July to the end of October, but said the cost of keeping these plans on the ground is largely offset by increased freight operations.
With Australia successfully containing the epidemic, Qantas announced a return to 60% of pre-Covid domestic capacity by the end of March and 80% by the end of June.
Qantas recorded a loss of US $ 1.9 billion for the year ending June 30 as the coronavirus pandemic ravaged the global economy.
Joyce said a total of 8,500 employees will lose their jobs due to the crisis, and another 7,500 will remain suspended until international flights resume.
About 100 plans have also been established as part of a A $ 10 billion cost-cutting campaign and restructuring effort that Qantas said will provide a A $ 1 billion a year from 2023.