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Qantas profits nosedive 91%: Here’s what it means for Aussies

  • August 20 2020
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Qantas profits nosedive 91%: Here’s what it means for Aussies

By Cameron Micallef
August 20 2020

Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line.

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Qantas profits nosedive 91%: Here’s what it means for Aussies

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  • August 20 2020
  • Share

Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line.

Qantas

In a statement to the ASX, the airline revealed its underlying profits before tax fell to $124 million. Its statutory loss before tax has now grown to $2.7 billion.

Qantas CEO Alan Joyce described the financial impact of COVID-19 as a tough time for the business.

“The impact of that is clear. COVID punched a $4 billion hole in our revenue and $1.2 billion in our underlying profits,” Mr Joyce said.

The financial result has left 6,000 Australians without a job as the airline looks to restructure.

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“That’s the sad reality of what the pandemic means for airlines – far fewer employees, at least for a while,” Mr Joyce explained.

“Some carriers are shrinking their workforce by 30, 40 per cent. Some may not survive at all.”

“For the Qantas Group, the job loss figure we’ve already announced is around 20 per cent overall and about 25 per cent at the management level.”

Mr Joyce thanked those who were leaving for their service and pointed to brighter days for the airline in the future.

“We know FY21 will be another tough year. But there is opportunity on the horizon,” Mr Joyce said.

“Hard decisions in the current climate are largely about survival – and also about eventually being able to grow again.

“Coming out of this crisis, we’ll be the only Australian airline that can fly long haul,” Mr Joyce concluded.

Qantas is not paying dividends in order to preserve its cash reserve during the border closures.

On the opening bell, Qantas shares were down 1.6 per cent to $3.70 a share.

Qantas profits nosedive 91%: Here’s what it means for Aussies
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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