QF responds to COVID-19

QANTAS this morning unveiled sweeping capacity cuts across its international network, with 10 of the airline’s 12-strong Airbus A380 fleet grounded until Sep due to plummeting travel demand (TD breaking news).

CEO Alan Joyce will take no salary until the end of Jun, amid a range of other cost-saving measures including cutting executive pay by 30%, the cancellation of a share buy-back scheme, a recruitment freeze and asking all staff to take paid or unpaid leave.

The biggest capacity reductions focus on Asia, with a combination of frequency and route cuts seeing overall seats down 31% versus this time last year.

Capacity to the USA is being reduced by 19% and the UK by 17%, along with a 10% cut to trans-Tasman services, in line with forward booking trends.

Joyce confirmed the airline was suspending flights to Bangkok and delaying the highly anticipated launch of its new BrisbaneChicago route until Sep this year.

Flights to San Francisco from both Brisbane and Melbourne are being suspended, along with QF’s seasonal flights to Vancouver.

Sydney-London flights will bypass Singapore and instead operate via Perth, meaning PerthLondon will go double-daily.

More on the QF cuts on

QANTAS CEO Alan Joyce says the carrier’s escalating capacity cuts (see page 1) are a response to a “sharp drop in bookings on our international network.

“We expect lower demand to continue for the next several months,” he said, with the flight reductions aiming to reduce costs immediately as well as give certainty to the market.

“We retain the flexibility to cut further or to put capacity back in as this situation develops.”

Singapore-based Jetstar Asia will cut capacity by almost 40%, while the Qantas First Class Lounge in Singapore will also close temporarily.

Jetstar Pacific, based in Vietnam, has suspended all international routes until the end of Apr except for SGN-BKK.

Qantas and Jetstar will also waive change fees for new international bookings made until 31 Mar, for travel to 30 Jun.