Qantas suffers $1bn half-yearly loss, pushes back international flight plans
Qantas Group has suffered a $1.1 billion loss in the first half of the 2021 fiscal year, and pushed back expectations of when it will resume international flights.
The company lost a whopping $6.9 billion in revenue over the six-month period, which covered Victoria’s extended lockdown and nationwide border closures.
Qantas’ statutory loss before tax was $1.47 billion. This included further redundancy and restructuring costs of $284 million in addition to the $642 million provided for in FY20, and a further $71 million writedown of its A380 fleet in line with the value of the Australian dollar.
Qantas Group CEO Alan Joyce described the figures as “stark, but not surprising”.
“During the half, we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began,” he said.
“Virtually all of our international flying and 70 per cent of domestic flying stopped, and with it went three-quarters of our revenue.
Joyce said Qantas’ $4.2 billion of liquidity the group “breathing room to deal with the levels of uncertainty we’re still facing, and funding for the restructuring that will ultimately speed up our recovery”.
Qantas and Jetstar are now planning to restart regular international passenger flights to most destinations from 31 October 2021 – a four-month extension from the previous estimate of July, which had been in place since mid-2020.
The date change aligns with the expected timeframe for Australia’s COVID-19 vaccine rollout to be effectively complete.
“Capacity will be lower than pre-COVID levels, with frequencies and aircraft type deployed on each route in line with the projected recovery of international flying,” the company said in a statement.
“International capacity is not expected to fully recover until 2024.”
“The group remains in close consultation with the federal government around the reopening of international borders and will keep customers updated if further adjustments are required.”
Qantas said it was assessing the use of digital health pass apps to help support the resumption of COVID-safe international travel.
“The CommonPass and IATA Travel Pass smartphone apps are being trialled on the airline’s international repatriation flights,” it said.
However, Qantas and Jetstar are planning for a “significant increase” in flights to and from New Zealand from 1 July 2021.
“The group has the ability to respond to travel bubbles that may open,” Qantas said.
Qantas’ billion-dollar loss highlights need for ‘Aviation Keeper’: TWU
The Transport Workers’ Union (TWU) said Qantas’ $1.1 billion half-yearly loss shows that the federal government must introduce an extension to JobKeeper for all stood-down aviation workers, with strict conditions for the companies receiving it.
TWU national secretary Michael Kaine said ongoing public support should be extended to keep the aviation industry alive, but companies like Qantas must be compelled to stop outsourcing and, for the foreseeable future, cap executive salaries and ban bonuses.
“Workers at Qantas, Virgin and other aviation companies are just four weeks away from the end of a lifeline which has kept their jobs going and their families afloat,” he said.
“These workers need to know that their jobs will still be there at the end of March, and that the skills and experience they have built up over many years will not be lost in our industry.
“We urge the federal government to introduce ‘Aviation Keeper’, which should include all aviation workers whose jobs continue to be affected by the crisis.
“There can be no carving out of international aviation or denying JobKeeper to workers like those at ground operator Dnata because of the company’s structure.”
Featured image source: iStock/ermingut
Latest News
From Olympians to mindset coaches, Helloworld’s OMC conference wraps in style
The 2024 Helloworld Travel Owner Managers Conference (OMC) has wrapped up in style in Sydney with over 550 attendees in attendance. The event brought together Helloworld owner-managers from across Australia and New Zealand along with valued supplier partners, special guest speakers, senior management and staff for three days of conferencing, insightful content and events across […]
Bunnik Tours welcomes KJ Phillips as the new BDM for QLD
Karen (KJ) Phillips has been appointed as Bunnik Tours’ first Queensland-based BDM since Covid, as the small group touring specialist sets their sights on big growth. Phillips is making a comeback to the travel industry after her most recent role as an account manager outside of the sector. Bringing her extensive experience and decades of […]
Drifter to usher in new age of affordable hybrid accommodation in Christchurch
Leisure Accommodation Collective (LA Co) will launch the first Drifter hybrid hotel on 1 June with the opening of 95-room Drifter Christchurch. Housed in one of the city’s great heritage buildings, Drifter Christchurch’s historical beauty and contemporary aesthetic is representative of rebirth and rejuvenation in a city famous for its resilience. Drifter Christchurch is the […]
Icebergs restaurateur Terzini joins Mangan at Sydney International Airport
Icebergs Dining Room and Bar restaurateur Maurice Terzini is to take his world-famous brand to Sydney Airport where he will join c
Delegates ready for Africa’s travel showcase Travel Indaba at Durban ICC
Pan-African global travel showcase, Africa’s Travel Indaba, kicks off at Inkosi Albert Luthuli International Convention Centre (Durban ICC) on Monday, running to 16 May. Durban remains a top destination for both leisure seekers and business travelers. Collaborating with Durban, the province of KwaZulu-Natal (KZN) has bolstered security measures, particularly in tourist hotspots and around the […]
APT’s world-first hydraulic-powered restaurant and bar ‘will be the envy of river cruises’
In a world-first in cruising, APT’s soon-to-launch European river ships will feature a state-of-the-art hydraulics system that will raise an entire restaurant and bar up to meet an expansive open sun deck while the ships are docked. In an exclusive announcement made at a special launch in Sydney today (Thursday, 9 May), the almost 100-year-old […]
Air Vanuatu cancels all flights to Australia, files for insolvency
UPDATE 10 MAY: Ernst & Young Australia (EY Australia) have stepped in as administrators after Air Vanuatu operations entered voluntary liquidation overnight. Representatives of EY are now in Vanuatu conducting safety and maintenance checks of the fleet, ahead of resumption of operations as soon as possible. The appointment follows a challenging period for the global […]
South Australian beach crowned best ‘hidden gem’ in the country
Stoked baby! Or was that a typo?
Avalon Airport champions low-cost rail connection from Melbourne CBD
Avalon rail connection? Bring it on! In two years, say officials, but we say they've got Buckley's.
2024 Green Revolution Summit brings travel heavyweights into green fuel discussion
It's almost like the organisers read our article on sustainable fuel this week.
Wendy Wu Tours first China mega-famil for 100 travel agents will be full of Wow!
China travel guru Wendy Wu should have no trouble ordering 100 dumplings for key travel agents on her mega famil.
Oaks Hotels & Resorts gets behind Netball’s Suncorp Super League
So Netball Australia draws its moral line somewhere between Gina Rinehart and Oaks Hotels & Resorts.
Tourism Australia appoints new regional general manager United Kingdom
Expat Aussie Andrew Boxall steps off a Flight Centre gig to plant the flag as UK Tourism Australia GM.
Chef Alessandro Pavoni unveils Cibaria at Manly Pacific MGallery Collection
Only problem is you'll get stuck on the Spit Bridge on the way back, after you finish your meal.
Hotel Review: Atlantis The Royal – Stunning in every sense
You can look but you can't touch. At least that's what it feels like when reading an article on this masterpiece.
Flight Centre’s Big Red Sale starts today
Flight Centre taking inspiration from Qantas' Red tail sale yesterday, someone's gotta change for the next round.
Aurora Expeditions announces savings for solo travellers
Save your money and travel and go solo, just don't spend it all buying friends at the bar.
Etihad and Tourism officials launch free Abu Dhabi Stopover
Etihad's giving you free hotel stays on your stopover while Qantas pays fines for ripping people off.
New MSC Australia boss talks hot topics for local cruisers, including the Caribbean
New MSC Australia boss, Antonio Paradiso, spills the Caribbeans on where he expects Aussie cruisers will go next.
Contiki’s latest campaign inspires travellers to engage with the world around them
Hands off! Influencers invited on holiday and told not to post anything. We can assure you they're back at it now.
Aussies a hit on the conference floor for IPW 2024
Diana Ross on opening night, Keanu's Dogstar band and a dozen lobster rolls. All in a week's work at IPW 2024.
Disney excited about prospects of cruise business as Disney Treasure nears completion
Disney's booming cruising business is set to knock Disneyland experiences out of the park.
Scoot’s first E190-E2 flights take off between Krabi and Hat Yai
When flying's a pitch. Airline lite Scoot offers a standard seat pitch of 29” on its new 112-seater.
Premium hotel operator ERDI launches it’s own academy in heart of Melbourne
ERDI expects to be shaken not stirred with the launch of its ERDI Academy in its Melbourne hotels.
Tropical North Queensland action-packed events calendar for adventure enthusiasts
Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]
Singapore Airlines Group first to receive SAF from Neste as AU/NZ play catchup
Singapore leaving many in their green dust. Here in Australia, we're hoping for a tortoise and the hare type outcome
Qantas Red Tail sale discounts more than 200,000 fares
Qantas marketers forever thankful to the team who chose the red and white colours. How else would they name a sale!
Bannisters by the Sea unveils retreat style package for new mothers
Three hours in the car with a newborn from Sydney might be tough, but trust us, it'll be worth it when you arrive.
Nothing Bonza can do to prevent loss of planes, ACCC concerned by latest aviation developments
Going, going, gone. It seems...
APT offers destination incentives to enjoy the Best of Asia
Whether its a cocktail by the beach or a hike through the mountains, APT has you covered. You'll find us at the beach!
Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland
Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]
Get ready to roll the marketing dice with Susan Coghill: Travel DAZE EXEC 2024
It's heating up in Cairns and we're not talking about the weather! Get ready for a marketing masterclass with Susan.
Aranui Cruises slashes prices with No Single Supplement and Half Price offers
French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]
Cebu Pacific campaign aims to boost Aussie trips to the Philippines
Cebu Pacific's bouncy singalong ad campaign 'Fly to Happy, Fly to the Philippines’ aims to get more bums on seats.
Tauck’s new river and small ship ocean cruises, plus increased Seine capacity
Tauck adding itineraries like it's going out of fashion, which cruising certainly isn't.
Railbookers and La Dolce Vita Orient Express partner up for new luxury Italian itineraries
Fancy a luxurious trip through Italy? Who are we kidding, we know you do. Start your daydream here.