Go Back  PPRuNe Forums > PPRuNe Worldwide > Australia, New Zealand & the Pacific
Reload this Page >

Qantas announces $1.9 billion loss

Australia, New Zealand & the Pacific Airline and RPT Rumours & News in Australia, enZed and the Pacific

Qantas announces $1.9 billion loss

Old 20th Aug 2020, 00:32
  #1 (permalink)  
Thread Starter
 
Join Date: Feb 2018
Location: Brisbane
Posts: 131
Qantas announces $1.9 billion loss

https://www.smh.com.au/business/companies/qantas-swings-to-1-9b-loss-during-toughest-conditions-in-100-years-20200820-p55ngm.html
Qantas has swung to a $1.9 billion after-tax loss for the 2020 financial year after the COVID-19 pandemic forced it to ground most of its aircraft and halt international flights entirely.

Chief executive Alan Joyce said the pandemic presented the toughest set of conditions for the airline in 100 years, and that it was now unlikely Qantas will restart international flying before June next year, with the possible exception of flights to New Zealand.


The group reported a statutory loss before tax of $2.7 billion. The company did not announce a second-half dividend.

"The impact of COVID on all airlines is clear. It’s devastating and it will be a question of survival for many," Mr Joyce said. "What makes Qantas different is that we entered this crisis with a strong balance sheet and we moved fast to put ourselves in a good position to wait for the recovery."
Qantas' net loss was driven by a $1.4 billion non-cash write-down to assets including its fleet of Airbus A380s, which have been parked in the Californian desert for at least three years, and $642 million in redundancy and other restructuring costs. Excluding those one-off costs, Qantas reported an underlying profit of $124 million, down 91 per cent from last year.Qantas' revenue between April and the end of June fell 82 per cent, pushing annual revenue down 20 per cent to $14.2 billion.

In June, Qantas said it would axe 6000 jobs, or around 20 per cent of its workforce; retire its remaining 747s ahead of schedule and mothball most of its international aircraft for 12 months in an effort to cut costs. The airline is currently flying around 20 per cent of its pre-COVID domestic capacity.

Mr Joyce said Qantas was on track for a full-year profit of more than $1 billion when the COVID-19 crisis struck, and the fact that it still delivered an underlying profit showed how quickly it adjusted to the collapse in revenue.

“Recovery will take time and it will be choppy," he said. "We’ve already had setbacks with borders opening and then closing again. But we know that travel is at the top of people’s wish lists and that demand will return as soon as restrictions lift."

Around 20,000 Qantas staff remain stood-down from work, from a pre-COVID workforce of 29,000.

Qantas said it collected $267 million in payments through the JobKeeper scheme, with the majority going to stood down workers and the rest used to subsidise the wages of staff continuing to work.

Last edited by TimmyTee; 20th Aug 2020 at 00:44.
TimmyTee is offline  
Old 20th Aug 2020, 00:52
  #2 (permalink)  
 
Join Date: Nov 2012
Location: 3rd Rock
Posts: 187
It's a little less dramatic when $1.4b of that is just asset write downs, although the next six months will be interesting. There seems to be confidence in domestic travel, limited only by border closures rather than demand.
Lapon is offline  
Old 20th Aug 2020, 02:01
  #3 (permalink)  
 
Join Date: Oct 2001
Location: MEL AUS
Posts: 57
Bonuses all round for executive management!
Redpanda is offline  
Old 20th Aug 2020, 03:03
  #4 (permalink)  
Thread Starter
 
Join Date: Feb 2018
Location: Brisbane
Posts: 131
Originally Posted by Lapon View Post
It's a little less dramatic when $1.4b of that is just asset write downs, although the next six months will be interesting. There seems to be confidence in domestic travel, limited only by border closures rather than demand.
Whats the trade off for writing down the entire 380 fleet to the tune of $1.4bill? Didn’t the same thing happen for the 747s only a short while back?
TimmyTee is offline  
Old 20th Aug 2020, 03:08
  #5 (permalink)  
 
Join Date: Aug 2007
Location: sincity
Posts: 1,086
Originally Posted by TimmyTee View Post
Whats the trade off for writing down the entire 380 fleet to the tune of $1.4bill? Didn’t the same thing happen for the 747s only a short while back?
Keep the loss in as few reports as possible. Secure rights and move on (up...)
maggot is offline  
Old 20th Aug 2020, 03:54
  #6 (permalink)  
 
Join Date: Jun 2011
Location: The World
Posts: 1,001
Originally Posted by maggot View Post
Keep the loss in as few reports as possible. Secure rights and move on (up...)
So, maybe not next year but 21/22 should be a quite a profitable year.
dr dre is offline  
Old 20th Aug 2020, 04:11
  #7 (permalink)  
 
Join Date: Jun 2010
Location: Sydney
Age: 37
Posts: 484
It's Allan's transformation program all over again. Write off everything he can, announce a huge loss. Big profits from FY21-22 onwards. Hand shakes all round with huge management bonuses. Rinse & repeat.

Last edited by normanton; 20th Aug 2020 at 05:03.
normanton is offline  
Old 20th Aug 2020, 04:46
  #8 (permalink)  
 
Join Date: Dec 1999
Location: I prefer to remain north of a direct line BNE-ADL
Age: 45
Posts: 1,138
I think they will find it hard to report an underlining profit for 20/21 unless by some miracle all this State border kids playpen fighting comes to an end.
Angle of Attack is offline  
Old 20th Aug 2020, 05:02
  #9 (permalink)  
 
Join Date: Mar 2012
Location: Dark Side of the Moon
Posts: 993
This financial year will be a loss but not as bad as the one just announced and then a big profit 21/22. It is the transformational playbook repeated. Big bonuses coming for the executive team.
Ollie Onion is offline  
Old 20th Aug 2020, 05:12
  #10 (permalink)  
 
Join Date: Dec 2001
Location: Melbourne
Posts: 240
"Never let a good crisis go to waste" Winston Churchill
1A_Please is offline  
Old 20th Aug 2020, 05:56
  #11 (permalink)  
 
Join Date: Mar 2007
Location: australia
Age: 70
Posts: 902
Stage manage for a Government bail out , then use that for another share buy back just prior to the next vesting date , bingo !
blow.n.gasket is offline  
Old 20th Aug 2020, 08:27
  #12 (permalink)  
 
Join Date: Sep 2018
Location: Melbourne
Posts: 819
The little leprechaun won't be missing out on too much he's cunning and will have our corrupt Govt and the SkyGod lovers in his back pocket! -)
machtuk is offline  
Old 20th Aug 2020, 09:20
  #13 (permalink)  
 
Join Date: Sep 2003
Location: OZ
Posts: 136
What’s a Skygod lover?

Last edited by OBNO; 21st Aug 2020 at 03:21.
OBNO is offline  
Old 20th Aug 2020, 10:13
  #14 (permalink)  
 
Join Date: Apr 2008
Location: Sydney
Age: 58
Posts: 391
Originally Posted by normanton View Post
It's Allan's transformation program all over again. Write off everything he can, announce a huge loss. Big profits from FY21-22 onwards. Hand shakes all round with huge management bonuses. Rinse & repeat.
yep, you’ve nailed it!
roundsounds is offline  
Old 20th Aug 2020, 10:42
  #15 (permalink)  
 
Join Date: Dec 1999
Location: I prefer to remain north of a direct line BNE-ADL
Age: 45
Posts: 1,138
Sky god lover? Lol, please tell...
Angle of Attack is offline  
Old 20th Aug 2020, 21:56
  #16 (permalink)  
 
Join Date: Aug 2017
Location: In the Cab
Posts: 77
When will QF be seeking Government support?
Double_Clutch is offline  
Old 20th Aug 2020, 22:35
  #17 (permalink)  
 
Join Date: Aug 2005
Location: Brisbane
Posts: 85
Originally Posted by Double_Clutch View Post
When will QF be seeking Government support?
I'm sure Qantas and all the other airlines are constantly seeking government support in one form or another but it appears that, with no international network and a minimal domestic network, they won't actually need financial support for 12 to 18 months.
C441 is offline  
Old 20th Aug 2020, 23:06
  #18 (permalink)  
 
Join Date: Mar 2017
Location: Martian
Posts: 57
Two of you need your eyes tested....

He said SkyGod
packapoo is offline  
Old 20th Aug 2020, 23:07
  #19 (permalink)  
 
Join Date: Aug 2018
Location: Not far away
Posts: 48
Originally Posted by Double_Clutch View Post
When will QF be seeking Government support?
don’t think Alan believes in Government support; this from a newspaper 3 months ago:“Qantas CEO Alan Joyce warned against Federal Government assistance for his airline's competitor, saying help should not be offered to businesses that had been "badly managed".

Mr Joyce has repeatedly said airlines are facing a "survival of the fittest" scenario as the coronavirus pandemic grounds thousands of planes.

He has previously said Qantas is not seeking a bailout, but has warned that if Virgin gets government aid, the Federal Government needs to "level the playing field" to avoid distorting the market.”
Mr Google Head is offline  
Old 20th Aug 2020, 23:23
  #20 (permalink)  
 
Join Date: Mar 2007
Location: australia
Age: 70
Posts: 902
OBNO
What’s a Skygod lover?
I believe it’s either a battery operated marital aid or the brand name of some exotic prophylactic!
blow.n.gasket is offline  

Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.