SYDNEY, Aug 20 — Australian flag-carrier Qantas said revenues collapsed 82 percent between April and June due to the coronavirus pandemic, as the company posted a US$1.9-billion (RM7.9 billion) annual loss today.
The airline reported a “strong first half of the year” followed by “a near total collapse in travel demand”.
“Covid punched a A$4 billion hole in our revenue and a A$1.2 billion hole in our underlying profit in what would have otherwise been another very strong result,” CEO Alan Joyce said.
Qantas has cut 6,000 staff and grounded 100 planes for up to a year in a US$10-billion cost-cutting blitz.
Its main competitor, Virgin Australia, went into voluntary administration in April shortly after Australia closed its international borders and domestic travel plunged.
Virgin announced earlier this month it would close budget subsidiary Tigerair Australia and lay off 3,000 staff as it prepares to relaunch under the new ownership of US private equity giant Bain Capital.
“We were on track for another profit above US$1 billion when this crisis struck. The fact that we still delivered a full year underlying profit shows how quickly we adjusted when revenue collapsed.”
Joyce said the pandemic would continue to have a “huge impact” on the business, with expectations of a “significant loss” in the coming financial year.
Several domestic state borders remain closed while Qantas has said it does not expect to return to international travel until mid-2021. — AFP
