Qantas announced billion loss and suspended international flights until October

Avatar
Destination Editor
05:20:09 - February 25, 2021

In its 2020 financial results report, the Australian airline recorded a drop of 7 billion AUD (5.5 billion USD) in revenue, 75% of the average revenue, just within the last 6 months of 2020 due to the closure of the border.

Australian largest airline Qantas reported a 7 billion AUD (5.5 billion USD) decline in revenue in the second half of 2020, also announced that there would be no international flight until October as the pandemic continues devastating the aviation industry with new outbreaks in many countries.

According to Qantas’s financial report, its basic loss was 1.1 billion UAD (858 million USD) from July to December 2020, with a statutory loss amounting to 1.5 billion UAD.

Qantas Group CEO Alan Joyce said: “These figures are stark, but they won’t come as a surprise. A year ago, none of us knew just how big an impact COVID-19 would have on the world, or on aviation. It’s clearly worse than anyone expected.”

According to the CEO, the closure of the borders meant the airline lost nearly all its international flight schedules and 70% of its domestic flights, which caused a serious 75% drop in revenue (around 7 billion UAD).

Previously, in the first 6 months of 2020, Qantas also recorded a drop of 4 billion UAD in revenue, although it was on track for another profit above 1 billion UAD when the health crisis struck.

Thus, in the entire fiscal year 2020, Covid-19 took away a total of 11 billion UAD from this Australian airline.

In addition, Joyce said that Qantas has decided to suspend the expected resumption of international passenger flights from July to the end of October 2021. About 100 of Qantas’ aircraft have been grounding during the restructuring and cost-cutting effort worth 10 billion UAD. Fortunately, the cost of keeping those planes on the ground was largely being offset by increased freight operations.

The airline said this restructuring plan is expected to help it save 1 billion UAD per year from 2023.

However, Qantas announces another 4,000 jobs will be cut until September to reduce its workforce to 20,000, which means a total of 8,500 employees will lose their jobs due to the crisis and another 7,500 will be suspended until international flights are resumed.

THANKS FOR SPENDING TIME WITH DESTINATION REVIEW !

Stay updated on tourism industry with us.

    By submitting this form you agree to receive email communication from Destination Review
    Qantas announced billion loss and suspended international flights until October

    THANKS FOR YOUR
    REGISTRATION!

    The requirement was accepted, please check your email for the document.
    Close