United Kingdom
United States
Asia Pacific
‘It’s a question of survival for many’, warns Qantas as Covid ravages profits
Qantas has become the latest airline to lay bare the massive costs of Covid after posting a $2.7 billion loss in the year to June 30.
The Australian flag carrier, in its 100th year of operation, reported a ‘near total collapse in travel demand’ in the second half, losing $4b in revenue.
It also warrned that its international network was not expected to restart untl mid-2021.
It was now a ‘question of survival’ for many airlines, its Chief Executive Alan Joyce said, with recovery expected to be slow and ‘choppy’.
The loss includes a $1.4b non-cash write down of its assets, including the A380 aircraft.
Underlying pre-tax profits hit $124 million.
Joyce said it was facing the toughest conditions in its 100-year-history.
"The impact of Covid on all airlines is clear. It is devastating and it will be a question of survival for many," he said. "We’ve had to make some very tough decisions in the past few months to guarantee our future. At least 6000 of our people will leave the business through no fault of their own and thousands more will be stood down for a long time.
"Recovery will take time and it will be choppy. We’ve already had setbacks with [domestic] borders opening and closing again."
On an optimistic note, he added: "We know that travel is at the top of people’s wish lists and that demand will return as soon as restrictions lift."
He said Qantas had a strong balance sheet and ‘moved fast to put ourselves in a good position to wait for the recovery’.
Australia has one of the world’s most restrictive travel bans with citizens needing special permission to leave the country.
The government has already suggested its international borders will remain closed for the remainder of 2020 and into 2021.
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
Abercrombie & Kent hails $500 million funding boost
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Gatwick braces for strike
Co-pilot faints, easyJet flight issues ‘red alert’