SYDNEY: Australian flag carrier Qantas on Thursday posted an almost US$2-billion annual loss after a "near-total collapse" in demand due to the coronavirus pandemic. Strict restrictions on travel to Australia and a near-blanket ban on citizens leaving spelled a statutory pre-tax loss of Aus$2.7 billion (US$1.9 billion), including the cost of mothballing its Airbus A380s and huge redundancy payouts.
Revenues collapsed 82 percent between April and June. Facing "the most challenging period" in its 99-year history, Qantas said it would move ahead with retrenching 6,000 staff and has grounded 100 planes for up to a year in a US$10-billion cost-cutting blitz.
The airline reported a "strong first half of the year" followed by "a near-total collapse in travel demand" as virus restrictions were introduced. "We were on track for another profit above Aus$1 billion (US$718 million) when this crisis struck," CEO Alan Joyce said.
The global aviation industry is facing perhaps its biggest crisis to date, with numerous big-name carriers seeking billions of dollars to stop them from going under, while others have gone out of business.
Comments
Comments are closed.