Qantas has reported a massive $2 billion loss, as a result of the coronavirus crisis.
The Group reported a $124 million Underlying Profit Before Tax for the year to June 30, 2020, down a whopping 91 percent on the prior year.
At the statutory level, a $2.7 billion Loss Before Tax was reported, due mostly to a $1.4 billion non-cash write down of assets including the A380 fleet and $642 million in one-off redundancy and other costs as part of restructuring the business for recovery.
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CEO Allan Joyce says despite significant uncertainty across most markets, the company is still well positioned to take advantage of the eventual return of domestic and, ultimately, international travel demand.
“We’ll have to operate differently in response. And that will mean more hard decisions. That’s not to say everything will change.
“The advantages the Qantas Group has built up over the years will be even more important.
“We have a unique position as the only dual brand airline in the domestic market, with Qantas and Jetstar typically representing the bulk of our earnings.
“We have a growing loyalty program, which has diversified well beyond flying. And we have a brand, built up over 100 years, that people trust.
“The national carrier will continue to serve regional Australia, invest in tourism and employ thousands of highly skilled people.
“But, just as we’ve done in the past, there will be some reinvention required to succeed in a different world.
“We announced our high-level plan for recovery at the end of June.
“Over three years, it will save us $15 billion. That’s achieved by hard decisions like job losses and ongoing stand down of our people because of less flying, as well as fuel savings and lower maintenance costs from putting aircraft into hibernation.
“On a permanent basis, the plan will deliver around $1 billion in annual cost savings from FY23. A lot of that will come from reinvention – and we’ll have more to say on this in the months ahead,” Mr Joyce said.
The Qantas CEO went on to say that state border closures have significantly affected this year’s domestic recovery, and hopes there could be a national rule as to when states are allowed to close to other states.