Qantas (ASX:QAN) has started to repair its balance sheet as it sees Group Domestic capacity at 68 per cent of pre-COVID levels for December, rising to nearly 80 per cent for Quarter Three.
While the Group will post a substantial loss for FY21, it expects to be close to break even at the Underlying EBITDA level for the first half and net free cash flow positive (excluding redundancies) in the second half – allowing the repair process to begin.
Progress on vaccines provides additional consumer confidence.
The recovery plan announced in June this year is on track to deliver $600 million in structural cost benefits in FY21, reaching at least $1 billion in annual cost improvements from FY23 onwards.
Shares in Qantas (ASX:QAN) closed 1.5 per cent higher at $5.55 yesterday.