Performance against our Recovery Plan

How we’re delivering against our seven key areas of focus as we manage the impact of the pandemic.


In June 2020 the Qantas Group announced a three-year recovery plan in response to the COVID-19 pandemic. This plan will create a stronger platform for future profitability and growth, and deliver long-term shareholder value.

The key areas of focus for the plan are:

  • Cost savings
  • Deleverage the balance sheet
  • Cash flow
  • Fleet management
  • Customer and Brand
  • Qantas Loyalty
  • Employee engagement
Introduction table

Performance against our recovery plan targets: view scorecard in full size [PDF]

Cost savings

The Qantas Group has a target to reduce costs by $1 billion annually from the end of FY23, when compared to FY19. The Group is ahead of target with $650 million achieved in FY21. As at 30 June 2021, more than 90 percent of initiatives that make up the $1 billion have been completed or initiated. The Group is targeting a cumulative $850 million of cost reduction by the end of FY22.

Deleveraging the balance sheet

As part of the financial framework the Group is targeting a gross debt reduction of $1.75 billion by FY23. 

Periods of open domestic borders in the second half of FY21 coupled with strength in Freight and Loyalty saw significant cash generation, helping reduce Net Debt from $6.4 billion in February 2021 down to $5.9 billion by the end of June 2021.

The Group is also targeting for Net Debt / EBITDA to be less than 2.5 times which is now expected by the end of calendar year 2022.

Cash flow

The Group is targeting sustainable positive net free cash flow from FY22 onwards. This metric was achieved in the second half of FY21.

Supporting cash flow generation, the Group is also focused on cash positive flying. Despite the challenges associated with border closures through FY21, 95 per cent of Group Domestic flights were cash flow positive, with both Qantas Domestic and Jetstar Domestic generating positive underlying operating cash flow in the year. This also enabled a substantial amount of our people to return to work.

Aligned with the Financial Framework, the Group was also able to reduce its capital expenditure to align with the underlying operating cash flow of the business, with the Group's capital expenditure of around $700 million in FY21.

Fleet management

The Group has delayed delivery of its new A321neos and Boeing 787-9 aircraft to meet the Group’s requirements. 

The Group also brought forward the retirement of its last six 747s and placed its 12 A380s in long term storage. The Group is currently planning for five of the A380s to rex-enter service from mid-2022. In total, 10 of Qantas’ A380s with upgraded interiors are expected to return to service by 2024 with the remaining two A380s to be retired.

Customer and Brand

To ensure our competitive advantage the Group aims to maintain its Customer Advocacy (NPS) premium over our domestic competition. We are on track, with our NPS at historical highs across Qantas, Jetstar and Loyalty in FY21.  

We are also targeting to maintain our brand and reputation throughout the three-year program. We are on track with Qantas remaining the most trusted airline in the region.

Qantas Loyalty

Qantas Loyalty is targeting to return to double digit earnings growth by the end of 2022 and an Underlying EBIT of $500-600 million by FY24.

In FY21 Qantas Loyalty continued to perform well, generating over $1 billion in gross cash receipts and achieving record member satisfaction.

Qantas Loyalty returned to growth in the second half of FY21 with earnings higher than the first half of FY21 and higher than the second half of FY20.

Employee engagement

The focus on our people remains constant throughout the three-year recovery program.

Despite the challenges of restructuring and stand-downs that punctuated 2020 and 2021, sentiment surveys showed that employees remained proud and confident in the future of the Qantas Group.

FY24 Targets

FY24 targets chart

Beyond the three-year recovery program which is due to be completed in FY23, the Group has reaffirmed the FY24 targets which were originally announced at the 2019 Investor Day. By achieving these targets, the Group is aiming to have top quartile shareholder returns.

The Group is targeting the following:

  • Qantas Domestic - Targeting EBIT margin ~18%
  • Jetstar Domestic - Targeting EBIT margin ~22%
  • Qantas International - Targeting ROIC >10%
  • Jetstar International - Targeting ROIC >15%
  • Qantas Loyalty - Targeting $500-600 million EBIT
  • People - Continued improvement in employee engagement
  • Customer - Maintain Net Promoter Score premium to competitor