Invest
Qantas profits nosedive 91%: Here’s what it means for Aussies
Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line.
Qantas profits nosedive 91%: Here’s what it means for Aussies
Qantas’ profits have fallen 91 per cent as COVID-19-induced border closures hammer the airline’s bottom line.
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.
“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.
About the author
About the author
Shares
GameStop saga continues: 5 things you should know about market trends
With the mania over GameStop seemingly back on again, an expert has urged Aussie investors to think deep and plan carefully before buying into similar market trends. ...Read more
Shares
GameStop shares halted after rallying 100%
The GameStop saga looks set to continue, with the bricks-and-mortar gaming company rallying over 100 per cent in a single trading session. ...Read more
Shares
Westpac earnings soar in first quarter results
Westpac has reported a strong start to the year, with cash earnings soaring due to improving economic conditions and credit quality. ...Read more
Shares
Commbank’s profit shrinks, but shareholders pocket more cash
Australia’s largest bank has announced a significant increase in dividends to shareholders, despite the fact its bottom line has been rocked by the COVID-19 pandemic and the subsequent pause on m...Read more
Shares
How GameStop propelled Reddit to the Super Bowl
Reddit’s global popularity has exploded after its WallStreetBets community became the centre of a rebellion fixated on toppling the Wall Street hedge funds, with the social media platform now determ...Read more
Shares
Popularity of trading platforms soars amid COVID lockdowns
Increased spare time during COVID lockdowns has exponentially boosted the popularity of trading platforms, with new investors eager to capture some of the market gains. ...Read more
Shares
Sharemarkets replace casinos as youngsters look to make ‘easy’ money
Sharemarkets have become a substitute for casinos amid the COVID crisis, but impulsive trading is something everyone should be wary of, an expert has revealed. ...Read more
Shares
Amateur investors take on Wall Street: Here’s why Aussies are encouraged to stand back
Shares in a US brick-and-mortar video game company have grown by over 700 per cent in the past two weeks, as amateur investors play tug of war on Wall Street, prompting Aussie experts to urge for ...Read more
Shares
GameStop saga continues: 5 things you should know about market trends
With the mania over GameStop seemingly back on again, an expert has urged Aussie investors to think deep and plan carefully before buying into similar market trends. ...Read more
Shares
GameStop shares halted after rallying 100%
The GameStop saga looks set to continue, with the bricks-and-mortar gaming company rallying over 100 per cent in a single trading session. ...Read more
Shares
Westpac earnings soar in first quarter results
Westpac has reported a strong start to the year, with cash earnings soaring due to improving economic conditions and credit quality. ...Read more
Shares
Commbank’s profit shrinks, but shareholders pocket more cash
Australia’s largest bank has announced a significant increase in dividends to shareholders, despite the fact its bottom line has been rocked by the COVID-19 pandemic and the subsequent pause on m...Read more
Shares
How GameStop propelled Reddit to the Super Bowl
Reddit’s global popularity has exploded after its WallStreetBets community became the centre of a rebellion fixated on toppling the Wall Street hedge funds, with the social media platform now determ...Read more
Shares
Popularity of trading platforms soars amid COVID lockdowns
Increased spare time during COVID lockdowns has exponentially boosted the popularity of trading platforms, with new investors eager to capture some of the market gains. ...Read more
Shares
Sharemarkets replace casinos as youngsters look to make ‘easy’ money
Sharemarkets have become a substitute for casinos amid the COVID crisis, but impulsive trading is something everyone should be wary of, an expert has revealed. ...Read more
Shares
Amateur investors take on Wall Street: Here’s why Aussies are encouraged to stand back
Shares in a US brick-and-mortar video game company have grown by over 700 per cent in the past two weeks, as amateur investors play tug of war on Wall Street, prompting Aussie experts to urge for ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
