Qantas flags $2b loss, pushes for international travel late this year

Qantas is set to report a loss of more than $2 billion this financial year due to the COVID-19 pandemic but says it has stopped burning cash and started to pay down its debt pile.

The airline said in a trading update on Thursday morning it was on track to return to 95 per cent of pre-COVID domestic capacity in the June quarter, with all its short-haul aircraft back in service.

The airline last week pushed back the resumption date of most international flying from late October to late December, when it believes Australia’s international border should reopen following the completion of the vaccine rollout.

This is despite the federal budget stating that Australia’s border will probably remain shut until the middle of next year.

“No one wants to lose the tremendous success we’ve had at managing COVID but rolling out the vaccine totally changes the equation,” Qantas chief executive Alan Joyce said.

“The risk then flips to Australia being left behind when countries like the US and UK are getting back to normal.

“Australia has to put the same intensity into the vaccine rollout as we’ve put on lockdowns and restrictions, because only then will we have the confidence to open up.”

Source: The Sydney Morning Herald