Qantas, Jetstar cut flights due to virus
AUCKLAND: Qantas Airways will reduce flights across Asia — including to New Zealand — due to Covid19, and the company expects the virus will hit its fullyear result by $A100 million ($NZ104.5 million) to $A150 million.
The airlines were taking action now to limit exposure to softening markets, Qantas chief executive Alan Joyce said.
The capacity the airline was taking out was equivalent to grounding 18 aircraft across Qantas and Jetstar until the end of May — which affected 700 fulltime roles. To avoid job losses, it would use leave balances across the workforce of 30,000 and freeze recruitment to help ride it out, the company said.
Temporary reductions of about 5% would be made to Qantas and Jetstar’s services between Australia and New Zealand, Qantas said.
Qantas will reduce flights across the Tasman by 6% including cancellations on SydneyAuckland, MelbourneAuckland and BrisbaneChristchurch. Jetstar will reduce its Tasman flying by 5%.
Air New Zealand declined to comment on whether it would be taking up any of the slack but referred to its latest press statement which announced a reduction in Shanghai and Hong Kong services.
Earlier, Auckland Airport said it now expected underlying profit after tax, excluding any fair value changes and other oneoff items, for the full year to be between $260 million and $270 million due to the impact of coronavirus. It had previously signalled a range of $265 million to $275 million.
The Qantas news may weigh on that expectation.
Qantas International also said it would cut 16% of its Asia capacity until at least the end of May. Its SydneyShanghai route would remain suspended, while SydneyHong Kong would be reduced from 14 flights to seven, among other reductions.
Jetstar Group will cut its capacity to Asia by at least 15% until the end of May, affecting flights from Australia to Japan and Thailand, as well as intraAsia flights.
Qantas also said it and Jetstar would reduce total domestic capacity by 2.3% in the second half to better match demand.
‘‘We know demand into Asia will rebound. And we’ll be ready to ramp back when it does,’’ Mr Joyce said.