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Back in the black: Qantas predicts breaking even in 2021
The national airline expects to break even in 2021, minus the costs of redundancy payments, according to an official statement.
Back in the black: Qantas predicts breaking even in 2021
The national airline expects to break even in 2021, minus the costs of redundancy payments, according to an official statement.
The Qantas Group expects to repair its balance sheet in the second half of FY21, as the borders reopen, freight begins moving and the processes of cost reduction hit its bottom line.
As part of its cost reduction, Qantas has told 2,000 baggage handlers, ramp workers and cabin cleaners at 10 Australian airports that their jobs have been moved offshore.
Qantas Group CEO Alan Joyce said the airline has seen a vast improvement in trading conditions over the past month as many more people are finally able to travel domestically again.
“Between Qantas and Jetstar, there were over 200,000 fares sold for flights to Queensland in 72 hours after the border openings with Sydney and Victoria were announced. We’re also seeing people booking several months in advance, which reflects more confidence than we’ve seen for some time,” Mr Joyce said.
The airline will hike domestic capacity to 68 per cent of pre-virus levels by the end of December, and plans to increase it again to 80 per cent in the March quarter.
“Bringing domestic capacity back to almost 70 per cent in December is very positive compared to where we’ve been, and so is seeing more of our people back at work. But overall the group is still a long way off anything approaching normal,” the CEO told the ASX.
The assumption of breaking even is based on no material domestic border closures.
It also assumes no material international travel until at least the end of June 2021 beyond an increase in trans-Tasman flying to New Zealand, though this could improve depending on the speed of vaccines rolling out.
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