News: QAN Qantas Says COVID Likely To Cost More Than A$20 Bln In Revenue In 2021

Aug 26 (Reuters) - Qantas Airways Ltd (QAN) :

• A$12 BILLION REVENUE IMPACT FROM COVID-19 CRISIS IN FY21
• RESTRUCTURING PROGRAM AHEAD OF TARGET, DELIVERING A$650 MILLION IN YEAR ONE
• UPDATED PLAN FOR RESTART OF INTERNATIONAL SERVICES FROM END-2021
• 95 PER CENT OF DOMESTIC FLYING CASH POSITIVE FOR YEAR
• SEES IMPACT IN ORDER OF A$1.4 BILLION ON GROUP'S UNDERLYING EBITDA IN FIRST HALF OF FY22
• TOTAL OF 9,400 PEOPLE HAVE NOW LEFT QANTAS - UP ON PRIOR ESTIMATE OF 8,500 DUE TO OFFSHORE JOB LOSSES AT AIRPORTS AND SALES OFFICES
• "BY END OF THIS CALENDAR YEAR, IT'S LIKELY COVID WILL COST US MORE THAN A$20 BILLION IN REVENUE"
• EXTENDED BORDER CLOSURES WILL ALSO EXTEND STAND DOWNS OF DOMESTIC CREW AND AIRPORT STAFF BEYOND EIGHT WEEKS
• NO JOB LOSSES ARE EXPECTED
• RECOVERY PLAN EXPECTED TO DELIVER ADDITIONAL A$200 MILLION OF COST BENEFITS IN FY22.
• ABOUT 6,000 EMPLOYEES ASSOCIATED WITH INTERNATIONAL FLYING REMAIN STOOD DOWN DUE TO THE CLOSURE OF AUSTRALIA’S EXTERNAL BORDER
• INTERNATIONAL FLYING IN 1H22 EXPECTED TO BE AT ABOUT 15% OF PRE-COVID LEVELS
• EXPECT TO SEE SURGE IN DOMESTIC TRAVEL DEMAND AND GRADUAL RETURN OF INTERNATIONAL TRAVEL AS AUSTRALIA REACHES CRITICAL VACCINATION TARGETS
• SEES IN FY22, GROUP DOMESTIC CAPACITY INCREASE FROM 38% IN Q1 TO 53% OF PRE-COVID IN Q2
• SEES NET DEBT IN TARGET RANGE BY END OF FY22.
• QANTAS INTERNATIONAL FLYING IN 1H22 EXPECTED TO BE AT ABOUT 15% OF PRE-COVID LEVELS ON A BLOCK HOUR BASIS
• SEES GROUP DOMESTIC CAPACITY TO RISE TO ABOUT 110% IN 2H22

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