Australian airline Qantas Airways said on Thursday that it is unlikely to resume international flights before July 2021. As the airline is facing major losses due to the coronavirus pandemic.
However, the airline reported a 2.7 billion Australian dollars ($1.9 billion) loss for the financial year that ended in June. And a 91% drop in profit from the prior year.
Moreover, it said that its revenue dropped 4 billion Australian dollars ($2.9 billion) in the second half of the financial year due to the “Covid-19 crisis and associated border restrictions.”
Tough Decisions by the Company
Qantas Group CEO Alan Joyce said in a statement that the second half of the fiscal year 2020 was the “toughest set of conditions the national carrier had faced in its 100 years” but added that the company had the “resilience to deal with them.”
“We’ve had to make some very tough decisions in the past few months to guarantee our future. At least 6,000 of our people will leave the business through no fault of their own, and thousands more will be stood down for a long time,” Joyce said. “Recovery will take time and it will be choppy.”
Due to the coronavirus pandemic, the airline industry is majorly suffering losses. The International Air Transport Association, an airline trade organization, in July, said that it doesn’t expect global air travel to recover from the crisis until 2024.
Qantas Chopped 6,000 Jobs
Previously, Qantas laid off 6,000 people. It is also planning to stand down half of its 30,000 workforces. The airline has to take these steps as the airline sector is at a halt due to the pandemic crisis.
Quants, CEO Alan Joyce mentioned that as compared to its rival Virgin Australia, the airline was in a much better financial position previously. However, the company will be raising $1.9 billion in fresh capital to manage its expenses until travel resumes.
The CEO also said that the stand-down might extend. As there are no international flights and they won’t be starting before next July at the soonest. However, he wants the government to extend job keeper subsidies for the aviation sector. These subsidies will be expiring in September.
“We’re having good discussions with the government about possibly extending job keeper, or some other form of support, for those in the aviation industry who will be stood down for an extended period,” he said.
Grounding Airbus A380
For Three Years The airline will be sending its fleet of 12 long-haul Airbus A380s to the Mojave desert. The airline has been grounding the aircraft for three years. The Airbus A380 has the capacity to carry more than 800 passengers.