News: QAN Qantas Expects Significant Underlying Loss In FY21

Aug 20 (Reuters) - Qantas Airways Ltd (QAN) :

• RECOGNISED $571 MILLION OF DE-DESIGNATED HEDGE LOSSES IN FY20 STATUTORY RESULT
• GIVEN CURRENT BORDER RESTRICTIONS, 20 PER CENT OF PRE-COVID GROUP DOMESTIC CAPACITY IS SCHEDULED FOR AUGUST
• EXPECTING A SIGNIFICANT UNDERLYING LOSS IN FY21
• IN QANTAS FREIGHT DOMESTIC DEMAND EXPECTED TO REMAIN STRONG DUE TO GROWTH IN E-COMMERCE
• IN DOMESTIC BUSINESS, RECENT SALES ACTIVITY SHOWS HIGH LEVELS OF LATENT TRAVEL DEMAND WHEN RESTRICTIONS ARE EASED
• AROUND 4,000 OF AT LEAST 6,000 REDUNDANCIES EXPECTED TO BE FINALISED BY END-SEPTEMBER 2020, WITH CONTINUED UNION CONSULTATION
• AS AT 30 JUNE 2020, NET DEBT WAS $4.7 BILLION
• INTERNATIONAL NETWORK UNLIKELY TO RESTART BEFORE JULY 2021; POSSIBLY EARLIER FOR TRANS TASMAN
• IN QANTAS FREIGHT STRONG INTERNATIONAL FREIGHT DEMAND EXPECTED TO CONTINUE BUT NOT AT PEAK LEVELS SEEN IN 4Q20
• ONGOING STAND DOWN OF AROUND 20,000 EMPLOYEES, ENABLING RETENTION OF CORE SKILLS UNTIL WORK RETURNS
• LOYALTY EXPECTED TO CONTINUE STRONG CASH FLOW CONTRIBUTION IN FY21
• "AT LEAST 6,000 OF OUR PEOPLE WILL LEAVE BUSINESS THROUGH NO FAULT OF THEIR OWN, AND THOUSANDS MORE WILL BE STOOD DOWN FOR A LONG TIME"
• SIGNIFICANT FURTHER CAPITAL EXPENDITURE REDUCTIONS ARE FORECAST IN FY21