Australia’s Qantas pushes back international travel target
Massive loss in first half
SYDNEY • Qantas Airways Ltd said Thursday it did not expect a widespread resumption of international travel from Australia until the end of October after posting a A$1.03 billion (Us$820-million) pre-tax underlying loss for the first half.
The underlying loss before tax in the six months ended Dec. 31, the airline’s most closely watched financial measure, compared with a A$771-million profit a year earlier.
On a bottom-line level, Qantas swung to a A$1.47 billion loss from a profit of A$648 million the prior year at a time when many state borders remained closed, hampering a domestic market recovery.
“We’re now planning for international travel to restart at the end of October this year, in line with the date for Australia’s vaccine rollout to be effectively complete,” Chief Executive Alan Joyce said. “None of us knew just how big an impact COVID would have on the world, or on aviation.”
Qantas is cutting at least 8,500 jobs and scything costs as part of a three-year plan to survive aviation’s biggest-ever crisis. Like airlines worldwide, Qantas’ attempts to fly even limited schedules have been repeatedly stymied by snap border closures, inside Australia and overseas.
The airline has grounded its international fleet with the exception of government repatriation charters and cargo flights.
It had placed international tickets on sale from July, but has pushed that back, with the exception of New Zealand.
Australia on Sunday began vaccinating its citizens against COVID-19.
Qantas has said it will expect international travellers to be vaccinated to board its planes.
In the domestic market, where Qantas normally earns the bulk of its profits, capacity has been running well below pre-pandemic levels due to state border closures.
The airline forecasts it will operate 80 per cent of its usual domestic capacity in the fourth quarter ending June 30, up from 60 per cent in the third quarter.