Qantas Plans To Resume International Flights $1b Half-Year Loss

Qantas has posted a record $1.08 billion revenue half-year loss, as it announced it plans to resume international flights in October.

When the COVID-19 pandemic blew up all over the world, the travel and tourism industry was somewhat expected to be the most affected industry with restrictions on traveling to prevent the spread of the virus. Other than that, flocking of people in an area is also not prescribed as it also promotes the proliferation of the virus. Thus, airlines, hotels, and other businesses were forced to reduce capacity if not to close down.

The Australian carrier said the dire financial result was triggered by the freeze on international travel and Australian state border closures caused by the pandemic. The airline said international Qantas and Jetstar flights will re-commence on October 21 – four months later than the planned resumption date of July. “The date change aligns with the expected timeframe for Australia’s COVID-19 vaccine rollout to be effectively complete,” Qantas said in a statement. 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 airline said it remains in discussion with the Federal Government about the reopening of international borders. Qantas’ revenue in the half fell 75 percent to $2.3 billion, as the number of passengers it carried shrank by 83 percent.

“These figures are stark but not surprising,” Qantas chief executive Alan Joyce said. “During the half, we saw the second wave in Victoria and the strictest domestic travel restrictions since the pandemic began. Virtually all of our international flying and 70 percent of domestic flying stopped, and with it went three-quarters of our revenue.”

Mr. Joyce said Australians were eager to travel domestically and hoped the threat of snap border closures – which deterred people from booking flights – could lessen once the most vulnerable people were vaccinated.

Article courtesy of Qantas announces record $1b half-year loss and resumption of international flights in October (9news.com.au)

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