“The Qantas Group faces some significant challenges, but we’re fundamentally optimistic about the future. Almost two-thirds of our pre-COVID earnings came from the domestic market, which is likely to recover fastest. We have the leading full service and low fares airlines in Australia, where distance makes air travel essential, and diversified earnings through Qantas Loyalty.
As a business, we’re focused on returning to profit and building long term shareholder value. As the national carrier, we remain committed to supporting tourism, connecting regional communities and safely flying millions of people every year.” – Alan Joyce, Qantas Group CEO.
Qantas was founded 100 years ago in the middle of turbulent times. In 1920, the world was recovering from the Great War and a devastating pandemic. Throughout our long history, we’ve faced many periods of upheaval, uncertainty and dealt with many sudden shocks.
We draw strength from this history and know we’ve always come back from a crisis stronger than before.
In June 2020 we outlined a three-year plan to guide the Qantas Group through the COVID-19 crisis and towards a bright future.
The recovery plan is focused on three immediate actions:
- Recapitalise through a $1.4 billion equity raising to strengthen our financial resilience.
- Right size our workforce, fleet and other costs according to demand projections, with the ability to scale up as flying returns.
- Restructure to deliver ongoing cost savings and efficiencies across our operations.
Unfortunately, this means some 200 Qantas and Jetstar aircraft grounded for a significant period, at least 6,000 job losses, and extended stand downs for thousands of our people until more flying returns.
Subsequent phases of the ‘Next 100’ recovery plan focus on the increasing ramp up of flying as restrictions ease and pursuing new opportunities as our balance sheet is repaired – including our ambition for more non-stop international flights.
Over three years, the recovery plan targets benefits of $15 billion. That’s achieved by reduced flying activity as well as fuel consumption savings and lower maintenance costs from putting aircraft into hibernation.
The plan will deliver around $1 billion in annual cost savings from FY23 through productivity improvements across the group.