Australian airline Qantas saw an 82% drop in revenue between April and June due to the coronavirus pandemic and an annual loss of US $ 1.9 billion.
Falling demand resulted in the company losing A $ 2.7 billion before tax and A $ 1.964 billion after tax.
These figures include the significant compensation paid to dismissed employees.
Acknowledging that she was facing “the most difficult time” since her birth 99 years ago, Qantas said she was determined to move forward.
Reduction of the workforce by 6,000 people
The company has reduced its workforce by 6,000 people and immobilized around 100 planes for a period of up to a year as part of a drastic cost reduction operation of USD 10 billion.
However, she reported a “solid first half” followed by a “near total collapse in demand for flights”.
“We were on track to return to profit above USD 1bn when this crisis hit,” said CEO Alan Joyce.
The outbreak is expected to continue to have a “huge impact” on the business, with the forecast for a “significant loss” in the coming fiscal year, he added.
Alan Joyce acknowledged that the pandemic would continue to have “an immense impact” and said he expected “significant losses” over the next fiscal year.
Australia’s international borders are closed to the majority of foreign passengers, and citizens of this huge island continent are virtually prohibited from leaving their country.
The Australian aviation leader does not plan to regain the level of frequency of its flights before the pandemic before mid-2021.
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