No International Flying Until COVID-19 Vaccine is Found, Qantas CEO Says

Australian carrier, Qantas Airways Today announced  that it’s “unlikely” to resume international flights before July 2021, as it suffers heavy losses due to the coronavirus pandemic.

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.

Alan Joyce, Qantas chief executive says the airline is unlikely to do any international flying until a vaccine for the virus that causes COVID-19 is found and widely deployed.

Joyce’s pessimistic assessment came as the airline posted its worst financial results since 2014 with a full-year net loss of A$1.96 billion ($1.41 billion) up to the end of June 2020. Qantas did, however, report a better than expected underlying pre-tax profit of A$124 million driven by a strong first-half performance before the Corona crisis grounded much of the airline’s fleet.

The crisis has so far taken a $4 billion hit on Qantas’ revenues during a period that Joyce describes as the worst trading conditions the airline has ever faced in its 100-year history. “To put it simply, we’re an airline that can’t really fly to many places – at least for now,” Joyce told investors and journalists at a press event earlier on Thursday.

Along with completely suspending its scheduled international services, Qantas’ domestic recovery has also been hampered by continuing inter-state border closures, including between states with little to no community transmission of COVID-19.

“Just as we thought domestic flying was in recovery mode, we’ve been hit by another set of border closures,” Joyce explained while calling for a national framework of factors that would determine whether state borders should be closed. Domestic flying remains at just 20 per cent of pre-COVID levels but could rise to as much as 75 per cent with some easing of border restrictions in September.

There is “pent up demand” for domestic travel, Joyce argued while pointing out that some intra-state routes are actually performing better than before the Corona crisis.

Around 4,000 employees have already been made permanently redundant, while a further 2,000 are set to lose their jobs by the end of September. And as many as 20,000 workers have been “stood down” without pay until demand for travel picks up.

For now, over 100 Qantas aircraft remain in longterm storage with all of the carrier’s Airbus A380’s lying dormant in the United States and the iconic Boeing 747’s now permanently retired.


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