Qantas announces massive loss as Coronavirus continues to impact operations

Qantas, Australia’s largest airline is expected to announce quarterly losses of more than $1.1 billion are expected, although it says it has made progress in decreasing its debt.

The airline said that Coronavirus lockdowns and travel restrictions imposed by the Delta outbreak are to blame for an expected first-half loss in underlying earnings.

With improved travel demand and an $802 million Sydney land sale helping lower significant financial debt, Qantas Chief Executive Alan Joyce remains positive about future conditions, saying clients are still booking domestic and international travel despite the current virus variant.

Joyce advised “there has been a noticeable decrease in overseas travel bookings since the news of the Omicron variant broke, but we haven’t seen many cancellations.

“This week, we’ve observed an increase in the number of customers who are willing to go if their border and quarantine settings are right.

“For us, 2022 is not about making money, and it’s about generating positive cash flows and repairing the balance sheet by building revenue.

“We’re near the debt target we set for ourselves.”

Since the pandemic began, the airline has cut thousands of jobs as bookings have surged due to virus rules.

Following a tender, the airline confirmed that it had chosen Airbus jets for its domestic narrow-body fleet.

By the end of the fiscal year, 40 planes from the Airbus A320neo and A220 families will be ordered.

According to Joyce, the planes were quieter and produced fewer carbon emissions.

Joe Cusmano