Qantas (ASX:QAN) CEO Alan Joyce says in addition to job losses, they’ve reviewed their property footprint in order to consolidate.
He says “the only antidote when you are faced with less revenue is to lower your costs.”
The border openings delay resulted in a $100 million negative impact on earnings for the first quarter of FY21, and will have an impact on Q2 as well.
They have identified $15 billion in cost savings over the next three years, mostly through reduced flying activity.
They are also targeting $1 billion in ongoing cost improvements from Financial Year 23.
The $1 billion in savings are front-end loaded, with $600 million due to be unlocked in this financial year.
The airline expects 50 per cent capacity by Christmas.
Shares in Qantas (ASX:QAN) are trading 2.3 per cent higher at $4.53.