Qantas suffers a significant loss as preparations for international resumption

Shariq TahirWeb Editor

27th Aug, 2021. 04:13 pm
Qantas suffers a significant loss as preparations for resumption

Qantas has reported a full-year loss of AUS$2.6 billion (£1.2 billion) for 2021, as a result of the Covid-19 incident.

The airline, on the other hand, stated that it had begun fiscal 2022 in a “fundamentally better position” to deal with uncertainty and manage its recovery.

The Australian flag carrier reported a total revenue loss of AUS$16 billion (£8.4 billion) as a result of the pandemic.

This comes after a year of limited overseas travel and repeated waves of domestic border restrictions, both of which have impacted demand.

The underlying EBITDA was AUS$410 million (£216 million), which was consistent with the guidance set in May.

Qantas and Jetstar generated significant income during periods of open domestic borders in the second half of the year, assisting the business to lower net debt from AUS$6.4 billion (£3.4 billion) in February to AUS$5.9 billion (£3.1 billion) by the end of June.

Throughout the year, cash flow was supported by Qantas Loyalty’s ongoing good performance and Qantas Freight’s much higher overseas yields.

Chief executive of Qantas Group, Alan Joyce, said, “This loss shows the impact that a full year of closed international borders and more than 330 days of domestic travel restrictions had on the national carrier.”

“The trading conditions have frankly been diabolical.”

“It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months.”

“By the end of this calendar year, it’s likely Covid-19 will cost us more than AUS$20 billion (£10.5 billion) in revenue.”

“Things remain tough, especially for thousands of our people waiting to return to their jobs when borders open and hopefully stay open,” he added.

 

 

 

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