Qantas (ASX:QAN) ready to take-off leaving FY21 loss behind

Company News

by Melissa Darmawan

Qantas (ASX:QAN) appears optimistic to resume international flights to countries with high vaccine rates.

On the docket includes Singapore, Japan, the US, the UK and hopefully New Zealand. The airliner has crossed their fingers hoping that flights could resume from mid-December this year.

The likes of Bali, Jakarta, Manila, and Johannesburg are pencilled in from April 2022 at the earliest.

The announcement came as the flying kangaroo posted a $2.35 billion loss for the 2021 financial year, after a $2.7 billion loss from the year before. The expected result was attributed to a $16 billion loss in revenue as the airline grappled with disruptions to domestic travel, let alone international travel which came close to a standstill for the period. Their underlying EBITDA came in at $410 million.

On a positive note, the airline’s net debt reduction came in better-than-expected. It went from $6.4 billion in February to $5.9 billion in June. Qantas embarked on a restructuring program which helped deliver $650 million in savings. This helped with the total liquidity figure of $3.8 billion.

Despite the challenging conditions the airline have faced, chief executive Alan Joyce told shareholders that they are “geared to recover quickly, in line with a national vaccine rollout that is speeding up.”

Shares in Qantas (ASX:QAN) are trading 3.29 per cent higher at $5.03.

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