Qantas $1.83 Billion Loss FY20/21
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Qantas $1.83 Billion Loss FY20/21
In what has been a horror 18 months for the global aviation industry, Qantas has revealed a staggering $2.3 billion loss before tax amid the ongoing COVID-19 global pandemic which has decimated the tourism industry. At the underlying level, the airline’s loss was $1.8 billion — a figure exceeding expert predictions.
https://www.smh.com.au/business/companies/qantas-reports-1-7b-loss-as-pandemic-woes-deepen-20210825-p58lz5.html
Surely that rainy day cash account must be getting drained fairly rapidly given another Titanic loss.
Would another unexpected & heavily compromised year be a bridge too far? Or is there a level of certainty inside Coward St that the Government is always there if it gets to that.
They start this current FY with $2.2 billion in cash and $1.58 billion in undrawn facilities for a liquidity position of $3.8 billion, down by only $724 million on the previous year. Not great, not terrible to borrow a line.
Given that revenue was down by $12 billion last FY they've managed this pretty well to date. Given their current position they could certainly manage their way through another year like the last one.
Thread Starter
But wouldn’t a lot of that “management” to get through the past 18 months come from the government subsidies to both airlines, and their employees? If they dried up this next FY, it could potentially be a different outcome. How would have they gone without that assistance? Sort of like REX claiming a profit, with almost the entirety of that profit coming from a Gov handout.
A380s coming back earlier
For the the past 18 months the experts on here (envious jealous Qantas haters) keep telling me they will never fly again.
Ok, they are not back "yet" but sorry all you haters, no news about "aircraft fleet scrapping/mass pilot lay-offs" as you all eagerily wanted to hear.
For the the past 18 months the experts on here (envious jealous Qantas haters) keep telling me they will never fly again.
Ok, they are not back "yet" but sorry all you haters, no news about "aircraft fleet scrapping/mass pilot lay-offs" as you all eagerily wanted to hear.
Last edited by a_pilot; 26th Aug 2021 at 01:39.
But wouldn’t a lot of that “management” to get through the past 18 months come from the government subsidies to both airlines, and their employees? If they dried up this next FY, it could potentially be a different outcome. How would have they gone without that assistance? Sort of like REX claiming a profit, with almost the entirety of that profit coming from a Gov handout.
They benefited about $97 million from the Australian Airline Financial Relief package (the Government foregoing fees and charges). Qantas probably got $70 million in benefits from the Tourism Aviation Network Support Program last FY and $35 million from the Regional Airline Network Support Program. Call it $200 million in grants, although both TANS and RANS require services to be flown so neither are straight out "gifts".
On top of that there was some $200 million from the various iterations of the Domestic Aviation Network Support Program. Again, DANS required services to be flown so that while $200 million went to the Revenue line, there would have been costs associated with the provision of those services.
There was also some $200 million paid for freight flights under the Domestic International Freight Assistance Mechanism and around $1.2 million for repatriation flights; again there would have been costs associated with the provision of those services.
So, leaving aside JobKeeper and IAS, you could say that some $500 million of Qantas's $5.9 billion in revenue came from government programs and they shaved nearly $100 million from their $7.9 billion expenses line thanks to AAFR. In the total absence of any government support they would likely still be able to manage their way through another year like the last one given their current net debt and liquidity position.
Last edited by MickG0105; 26th Aug 2021 at 01:28. Reason: Added repat flights
I really think it’s time to cut off Jetstar Singapore and Japan.
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Qantas picked up $588 million in JobKeeper for the year and probably around $30 million from the International Aviation Support program. All of that comes in on the Revenue line and straight back out on the Manpower expense line; it's essentially a pass through.
They benefited about $97 million from the Australian Airline Financial Relief package (the Government foregoing fees and charges). Qantas probably got $70 million in benefits from the Tourism Aviation Network Support Program last FY and $35 million from the Regional Airline Network Support Program. Call it $200 million in grants, although both TANS and RANS require services to be flown so neither are straight out "gifts".
On top of that there was some $200 million from the various iterations of the Domestic Aviation Network Support Program. Again, DANS required services to be flown so that while $200 million went to the Revenue line, there would have been costs associated with the provision of those services.
There was also some $200 million paid for freight flights under the Domestic International Freight Assistance Mechanism and around $1.2 million for repatriation flights; again there would have been costs associated with the provision of those services.
So, leaving aside JobKeeper and IAS, you could say that some $500 million of Qantas's $5.9 billion in revenue came from government programs and they shaved nearly $100 million from their $7.9 billion expenses line thanks to AAFR. In the total absence of any government support they would likely still be able to manage their way through another year like the last one given their current net debt and liquidity position.
They benefited about $97 million from the Australian Airline Financial Relief package (the Government foregoing fees and charges). Qantas probably got $70 million in benefits from the Tourism Aviation Network Support Program last FY and $35 million from the Regional Airline Network Support Program. Call it $200 million in grants, although both TANS and RANS require services to be flown so neither are straight out "gifts".
On top of that there was some $200 million from the various iterations of the Domestic Aviation Network Support Program. Again, DANS required services to be flown so that while $200 million went to the Revenue line, there would have been costs associated with the provision of those services.
There was also some $200 million paid for freight flights under the Domestic International Freight Assistance Mechanism and around $1.2 million for repatriation flights; again there would have been costs associated with the provision of those services.
So, leaving aside JobKeeper and IAS, you could say that some $500 million of Qantas's $5.9 billion in revenue came from government programs and they shaved nearly $100 million from their $7.9 billion expenses line thanks to AAFR. In the total absence of any government support they would likely still be able to manage their way through another year like the last one given their current net debt and liquidity position.
Qantas still also make a motza from its FF program which was boosted last year when VA went tits up, so to speak. So there are still revenue streams within the Qantas group that are pulling in some breadcrumbs. Not enough to rebuild the war chest but enough to keep the airline going.
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So, leaving aside JobKeeper and IAS, you could say that some $500 million of Qantas's $5.9 billion in revenue came from government programs and they shaved nearly $100 million from their $7.9 billion expenses line thanks to AAFR. In the total absence of any government support they would likely still be able to manage their way through another year like the last one given their current net debt and liquidity position.
https://www.theaustralian.com.au/bus...aa7b6b3c60f4c9
Before everyone gets carried away about the Gov “handout” which a very large chuck was jobkeeper. VA got a cut of the pie whilst being in administration and also having a foreign entity save it, Rex got a big piece of the pie also then announcing a jet operation start up. These handout all commensurate to the business size.
It appears the total bailout Qantas has received is more than $1 Billion. Thats an insanely high figure.
https://www.theaustralian.com.au/bus...aa7b6b3c60f4c9
https://www.theaustralian.com.au/bus...aa7b6b3c60f4c9
As to "bailout" or "handout" as The Oz article calls it, that sort of language is unhelpful as neither term is apt, moreso the former.
As I posted, Qantas received $588 million in JobKeeper for the year and around $30 million from the International Aviation Support Program. So more than half of government payments to Qantas went directly into the hands of employees; somewhat inappropriate to frame that as an out, either bail or hand.
You sound surprised. Add up what I put in my post and you'll get the same number.
As to "bailout" or "handout" as The Oz article calls it, that sort of language is unhelpful as neither term is apt, moreso the former.
As I posted, Qantas received $588 million in JobKeeper for the year and around $30 million from the International Aviation Support Program. So more than half of government payments to Qantas went directly into the hands of employees; somewhat inappropriate to frame that as an out, either bail or hand.
As to "bailout" or "handout" as The Oz article calls it, that sort of language is unhelpful as neither term is apt, moreso the former.
As I posted, Qantas received $588 million in JobKeeper for the year and around $30 million from the International Aviation Support Program. So more than half of government payments to Qantas went directly into the hands of employees; somewhat inappropriate to frame that as an out, either bail or hand.
Don't forget that if the employee was still working or taking paid leave, then the employer kept Jobkeeper all for themselves. So, much of that $588 million was in fact retained by the airline.
Paid leave
Employers and employees can agree for employees to take paid leave while they’re receiving JobKeeper payments. Qualifying employers need to pay their employees for any work they continue to perform and for authorised paid leave that they take.Payment for leave
While an employee of a qualifying employer is on paid leave (such as annual leave or long service leave), they need to be paid:- an amount equal to the applicable JobKeeper payment, or
- their usual pay for work performed (including leave payments), if it’s more than the applicable JobKeeper amount.