Qantas axes flights across group as coronavirus to hurt FY20 profit
![Qantas axes flights across group as coronavirus to hurt FY20 profit](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Qantas Group has announced temporary reductions to flights across Asia in response to a drop in demand due to the coronavirus outbreak.
The actions were announced as part of the group’s half-yearly financial results, where the net profit impact of coronavirus was estimated at between $100 million to $150 million for FY20 – a figure softened by lower fuel prices.
Reductions of around five per cent will be made to Qantas and Jetstar’s flying between Australia and New Zealand. There is no change to other key parts of the Qantas International network, such as the US and UK.
Qantas said reductions of around two per cent of total group domestic Australian flying in the second half are being made to reflect market demand.
The company said customers with existing bookings who are impacted by the reductions will be contacted directly and offered alternatives.
For most domestic bookings, this will involve slight changes to their departure or arrival times. For international bookings, customers can move flights to another date or connect through another Australian city.
Here’s a rundown of which flights are being scrapped:
International
Qantas International will cut 16 per cent of Asia capacity until at least the end of May, impacting flights from Australia to mainland China, Hong Kong and Singapore.
Sydney to Shanghai (the airline’s sole route to mainland China) will remain suspended, Sydney to Hong Kong has been reduced from 14 return flights per week to seven, Brisbane to Hong Kong has been reduced from seven return flights per week to four, and Melbourne to Hong Kong has been reduced from seven return flights per week to five.
Furthermore, Melbourne to Singapore flights will be operated by Boeing 787s instead of larger Airbus 380s, which will mean approximately 250 less seats per flight.
Qantas will reduce flights across the Tasman by six per cent, with cancellations on the Sydney- Auckland, Melbourne-Auckland and Brisbane-Christchurch routes. Jetstar will reduce its Tasman flying by five per cent.
Jetstar will cut its capacity to Asia by 14 per cent until at least the end of May, impacting flights from Australia to Japan and Thailand, and intra-Asia flights.
Cairns-Tokyo (Narita), Cairns-Osaka, Gold Coast-Tokyo (Narita), and Melbourne- and Sydney- Phuket will each be reduced by up to two return flights per week.
Each of the Jetstar airlines in Asia – Jetstar Asia (Singapore), Jetstar Japan and Jetstar Pacific (Vietnam) – have suspended flights to mainland China and are reducing flights across the region. In particular, Jetstar Asia is reducing total seats by 15 per cent.
Domestic
Qantas and Jetstar will reduce total domestic capacity by 2.3 per cent for the second half of the financial year to better match demand.
Most of these adjustments have already been published, with the balance to be made over the coming days. Cancellations are largely focussed on travel between major capital cities at off-peak times to minimise customer impact.
Qantas Group said demand for regional services is largely stable, meaning that recently announced routes will start as planned, including Sydney-Ballina (Byron Bay), Sydney-Mildura, Tamworth-Brisbane, and Sydney-Orange, as well as additional flights from Adelaide to Kangaroo Island and from Sydney to Bendigo. Jetstar’s new Melbourne-Busselton (Margaret River) flights are also unaffected.
Furthermore, Jetstar is looking at transferring an A320 aircraft from Jetstar to QantasLink to meet increased demand from the resources sector in Western Australia.
Qantas Group CEO Alan Joyce said the airlines were taking action now to limit exposure to softening markets.
“Coronavirus resulted in the suspension of our flights to mainland China, and we’re now seeing some secondary impacts with weaker demand on Hong Kong, Singapore and, to a lesser extent, Japan,” he said.
“Other key routes like the US and UK haven’t been impacted.
“We’ve also seen some domestic demand weakness emerging, so we’re adjusting Qantas and Jetstar’s capacity in the second half.
“What’s important is that we have flexibility in how we respond to coronavirus and how we maintain our strategic position more broadly.
“We can extend how long the cuts are in place. We can deepen them or we can add seats back in if the demand is there. This is an evolving situation that we’re monitoring closely.”
Joyce assured investors that demand from Asia will rebound, and the group will be ready to ramp back up when it does.
“These past few months have been extraordinarily difficult for the tourism industry and we’ve tried to minimise the impact of our capacity reductions as much as possible,” he said.
“About half of Qantas’ domestic cancellations are between Sydney, Melbourne and Brisbane, and we’re avoiding any route exits.”
Joyce noted that the capacity reductions are equivalent to grounding 18 aircraft across Qantas and Jetstar until the end of May, which he said in turn impacts about 700 full-time roles.
“To avoid job losses, we’ll be using leave balances across our workforce of 30,000 and freezing recruitment to help ride this out,” he said.
“We’ll also take advantage of having some aircraft on the ground by bringing forward planned maintenance.”
To stimulate travel demand, Qantas will today launch a Double Status Credits offer for all fares booked between 20 and 25 February on all Qantas-operated flights, while Jetstar has a number of discounts planned, with every domestic and international destination to be on sale over the next month.
Half-year profit falls slightly, but record revenue achieved
![](https://www.travelweekly.com.au/wp-content/uploads/2020/02/Qantas-planes-at-Melbourne-Airport-1024x683.jpg)
Credit: iStock/TkKurikawa
Qantas Group also revealed its financial results for the first half of the 2020 financial year today, with its statutory profit after tax falling two per cent to $445 million.
The group’s statutory result for the first half of FY20 included $123 million of transformation costs such as those associated with the continuing introduction of the Dreamliner fleet, redundancies and discretionary non-executive employee bonuses.
However, Qantas Group prefers to focus on its profit before tax (PBT), with its underlying PBT down 0.5 per cent to $771 million, and its statutory PBT down 6.2 per cent to $648 million.
The group’s underlying earnings fell two per cent to $900 million in the first six months of FY20 compared to the previous corresponding period, while revenue rose three per cent to a record $9.5 billion.
Qantas’ domestic underlying earnings declined by 2.7 per cent to $465 million, while its international business experienced earnings growth of three per cent to $122 million, and Qantas Loyalty impressed with 12 per cent earnings growth to $196 million.
As for Jetstar Group, its half-yearly earnings dropped 13 per cent to $220 million.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
coronavirus financial results jetstar jetstar group qantas qantas groupLatest News
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Low-cost Indian carrier SpiceJet continues to burn cash
It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024
AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Journey Beyond launches first brand-led campaign during Paris Olympics
Journey Beyond is pushing the boundaries. On The Ghan, you can't even see them!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Ascott Australia partners with Hotels for Trees
Hoteliers can take a 'Lyf' out of this book and improve their green credentials.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Victoria’s TAC Top Tourism Town Award winners for 2024
Keep looking in our own backyard. There are plenty of places to go.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Uniworld partners with Camilla Franks with Egyptian-inspired collection
We are in de-Nile about making puns combining Crocs and leopard prints, given this luxe partnership.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Aussies at Paris Olympics anxious about travel risks, with incidents already recorded
Fortunately one of our biggest gold medal hopes still held onto his pedals.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Banyan Tree Seaview Villas elevates Laguna Lang Co
If you've ever played golf in the tropics, start early. LIke way early. It's hot! Damn hot.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Silversea taps Barbara Biffi as senior vice president for global sales
Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Wendy Wu unveils new Japan travel brochure and itineraries
Get outta town! Off-beat Japan will be a lot less congested we figure than the usual tourist hotspots.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
UK and Europe event organisers look to venues with sustainability integrity, ICC Sydney survey finds
Here in Sydney, you can even eat the table centrepieces. Although we advise they be cooked first.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Renos Rologas new general manager ANZ for FCM Travel
Two decades in the travel game! Let's hope Renos is in for the long haul at FCM.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Untamed Escapes to offer Cultural Day Tour from Port Lincoln in partnership with Maba Idi
International visitors travel thousands of kilometres for this experience. Time to share.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Luxe Finish Line Penthouses offer the best vantage point for the finish of the Sydney-Hobart
Long have we been following the yachts leavings Sydney Harbour and one day, we will see the finish, from this place!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
In a busy world, proximity to nature is the new luxury
Forget Raffles, treat your nearest and dearest to a stay at the local campsite. They'll be super close to nature.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Circular Quay welcomes new Korean dining experience to Sydney Place
We once took Korean-American chef David Chang around Koreatown, Eastwood. Not happy about driving rain, loved the food.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
MSC Cruises unveils a new outdoor kid-friendly attraction on World America
Drop your kid down the jaws of a shark and they come out 11 decks below. Sounds good to me.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy
Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Australian travellers abandon peer-to-peer stays and gravitate back to big hotels, survey finds
Doom scrolling Airbnb for the best-possible stay options two days out from departure was wearing us down, apparently.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Quark Expeditions launches the Ultimate Summer in the Arctic sweepstakes for travel advisors
Summer in the Arctic still means it's freezing. But hopefully a winning sweepstakes tickets will warm your cockles.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘I bet it smells weird’ – Internet divided over floating restaurant in China
I you are still feeling peckish at the end of your meal, their fish tank is full. But can you eat koi?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Turn up in the Northern Territory this Spring’ campaign deals
Agents and airlines get all hot and sweaty over these enticing deals. Or did someone just turn the air-conditioning up?
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘Like nothing on earth’: Saudi Arabia’s new Treyam resort set in a Star Wars-style landscape
As long as Jar Jar Binks is not there, we would like a seat at the Mos Eisley Cantina please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Raffles Hotels and Resorts is set to open in Tokyo in 2028
Time to get your vision boards at the ready! Raffles is landing in Tokyo!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
‘A true honour’ – Andrew Stark wins Flight Centre Director’s Award for the second time
Congratulations Andrew! If you're a fan of British reality TV you might notice a familiar face.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Club Med debuts travel agent portal 2.0 with bonus prize for tops sales
See those people by the pool. That could be you. Start selling through the portal people!
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Envoyage announces 2024 Australian Icons and rewards event in the Maldives
We were going to edit our name into the list but we chickened out.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
HIF Global signs collaboration agreement with Airbus on eFuels
We know it's a good thing but can a jet fuel geek out there send in a diagram explaining this please.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Crystal announces release dates for 2026 itineraries
If you have started collecting 2026 itineraries then here is another one for you.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Cairns Airport unveils display of support for FNQ youth
If you were craving some winter sun now you have a cultural reason for booking a flight to Cairns.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Viking announces six new cruise itineraries
Now's the time to start learning Putonghua, Nihongo and Lhasa. Or maybe even know where these are spoken.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Join Qatar Airways, Celebrity Cruises & Klook – Showcase Your Brand at Click Frenzy Travel August 2024!
Clicking calmly will also be welcome when it comes to this particular deal. Click calmly here to find out more.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
InsideAsia Tours launches new incentive that doubles agent commission
Double commission! We like the sound of that. Hope their system doesn't crash as a result.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Push to revive Parramatta’s iconic Roxy Theatre into entertainment destination
Long have we wished for this iconic heritage cinema to be revived as a tourist destination. Still waiting.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Qatar Airways signs an expansion to Boeing 777-9 aircraft order
Known as a quiet rural town in England, the entire global aviation industry now has its eyes on Farnborough.
![](https://www.travelweekly.com.au/wp-content/themes/bandtv1/img/default.png)
Flight Centre shares down following revised profit guidance
The stock market moves fast. What will the rest of the week hold for Flight Centre?