Qantas Posts FY21 Pre-tax Loss Of A$2.35 Bln; Announces Plans To Restart International Flights
Australian airline Qantas Group (QAN.AX,QUBSF.PK) reported Thursday fiscal 2021 loss before tax of $2.35 billion, which includes one-off costs such as redundancies and aircraft write downs.
Underlying loss before tax was $1.83 billion, and underlying EBITDA was $410 million, in line with guidance provided in May.
Total revenue loss from COVID reached $16 billion as the full year impact of minimal international travel and multiple waves of domestic border restrictions continued to hit travel demand.
In the year, revenue impact from COVID-19 crisis was $12 billion. By the end of this calendar year, COVID is likely to cost the company more than $20 billion in revenue.
Further, the company said its COVID recovery plan targets at least $1 billion in permanent annual savings from fiscal 2023 onwards. Progress is ahead of schedule, with $650 million in benefits delivered in fiscal 2021. This would increase to $850 million by the end of fiscal 2022.
Looking ahead, the company noted that recent outbreaks and associated domestic and trans-Tasman border closures would have an impact in the order of $1.4 billion on Underlying EBITDA in the first half of fiscal 2022.
Separately, Qantas provided more detail on preparations for restarting its international flights, with plans linked to the vaccine rollout in Australia and key overseas markets. On current projections, Australia is expected to reach National Cabinet’s ‘Phase C’ vaccination threshold of 80 percent in December 2021, which would trigger the gradual reopening of international borders.
In Australia, Qantas Airways shares were trading at $5.04, up 3.4 percent.
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