News: QAN Qantas Sees Group Domestic Capacity To Increase To 60% Of Pre-COVID Levels In 3Q21

Feb 25 (Reuters) - Qantas Airways Ltd (QAN) :

• RESTRUCTURING PROGRAM ON TRACK TO DELIVER $0.6 BILLION IN COST BENEFITS IN FY21
• INTERNATIONAL FLYING NOW AIMING TO RESTART END-OCTOBER 2021
• RECENT DOMESTIC BORDER CLOSURES HAVE DELAYED GROUP'S RECOVERY BY AN ESTIMATED THREE MONTHS
• WORKING ASSUMPTION FOR INTERNATIONAL TRAVEL TO RESTART HAS MOVED TO END OCTOBER 2021
• SEES GROUP DOMESTIC CAPACITY TO INCREASE TO 60% OF PRE-COVID LEVELS IN 3Q21 AND 80% IN 4Q21.
• NET DEBT EXPECTED TO PEAK IN 2H21
• AS AT 31 DECEMBER 2020, TOTAL CASH WAS $2.6 BILLION AND COMMITTED UNDRAWN FACILITIES WERE $1.6 BILLION
• SEES IMPACT OF DOMESTIC BORDER CLOSURES SINCE DECEMBER 2020 ON 2H21 EBITDA ESTIMATED TO BE $350-450M
• GROUP INTERNATIONAL CAPACITY CURRENTLY AT ABOUT 8% OF PRE-COVID LEVELS ON A BLOCK HOURS BASIS AND UNLIKELY TO MATERIALLY INCREASE DURING 2H21
• NEW AND MUCH BROADER PARTNERSHIP WITH ACCOR WILL ALSO LAUNCH IN MID-2021
• MORE THAN 5,000 PEOPLE HAVE LEFT SO FAR WITH REMAINDER TO HAVE LEFT BY END OF FY21
• FINALISATION OF MAJOR REVIEW, WHICH INCLUDES QANTAS AND JETSTAR HEAD OFFICES, IS EXPECTED BY END OF MARCH.
• TOTAL OF 14,500 FULL TIME EQUIVALENT ROLES ARE NOW STOOD UP WHILE AROUND 11,000 FULL TIME EQUIVALENT ROLES REMAIN STOOD DOWN
• BALANCE SHEET REPAIR TO BEGIN IN 4Q21.

Source: https://bit.ly/3pT4zvQ

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