News: QAN Qantas Says Group EBITDA Loss Of Between A$250-300 Million Expected In 1H22.

Dec 16 (Reuters) - Qantas Airways Ltd (QAN) :

• QANTAS GROUP MARKET UPDATE-QAN.AX
• GROUP DOMESTIC CAPACITY EXPECTED TO BE 102% OF PRE-COVID LEVELS FOR 3Q FY22 RISING TO 117% IN 4Q FY22
• GROUP INTERNATIONAL CAPACITY EXPECTED TO BE AROUND 30% OF PRE-COVID LEVELS FOR 3Q FY22
• NET DEBT EXPECTED TO BE APPROXIMATELY A$5.65 BILLION
• GROUP EBITDA LOSS OF BETWEEN A$250-300 MILLION EXPECTED IN 1H22.
• ALL STOOD DOWN AUSTRALIAN-BASED EMPLOYEES ABLE TO COME BACK TO WORK
• QANTAS FREIGHT EXPECTED TO DELIVER A RECORD PERFORMANCE IN 1H22
• AIRBUS A320NEO AND A220 FAMILIES CHOSEN AS PREFERRED AIRCRAFT FOR DOMESTIC FLEET RENEWAL
• ONCE NON-CASH DEPRECIATION AND AMORTISATION COSTS ARE INCLUDED, 1H FY22 UNDERLYING EBIT LOSS IS EXPECTED TO EXCEED A$1.1BN
• ORDER ANTICIPATED TO BE FINALISED BY END OF FY22
• EXPECTS TO INCUR ADDITIONAL RAMP-UP COSTS IN SECOND HALF OF FY22
• FUEL COST FOR 1H22 IS EXPECTED TO BE AROUND A$495 MILLION
• GROUP IS HIGHLY HEDGED FOR SECOND HALF OF FY22
• EXPECTS DOMESTIC FLYING TO BE ABOUT 75 PER CENT OF PRE-COVID LEVELS BY END OF DECEMBER RISING TO MORE THAN 100 PER CENT IN FEBRUARY 2022
• BOOKINGS ARE EXTREMELY STRONG ON NEW ROUTES FROM SYDNEY AND MELBOURNE TO DELHI STARTING IN DECEMBER
• INITIAL BOOKINGS ON RECENTLY ANNOUNCED PERTH-ROME SEASONAL SERVICE ARE ENCOURAGING
• DOMESTIC COMPETITION IS EXPECTED TO INTENSIFY IN SECOND HALF OF FY22
• EXPECTS ITS MARKET SHARE WILL NORMALISE AT AROUND 70 PER CENT ONCE ALL STATE BORDERS OPEN
• AIRBUS A320NEO AND A220 ORDER ANTICIPATED BY END OF FY22 CONSISTING OF 40 FIRM COMMITMENTS AND 94 PURCHASE RIGHT OPTIONS
• RAMP UP OF GROUP INTERNATIONAL CAPACITY EXPECTED TO BE AT BOTTOM END OF PREVIOUSLY QUOTED 40-55 PER CENT RANGE OF PRE-COVID LEVELS
• DOMESTIC DEMAND HAS STARTED TO PICK UP AGAIN AND WE'RE EXPECTING A STRONG PERFORMANCE OVER CHRISTMAS PERIOD
• SEES CONTINUED STRENGTH INTO EARLY NEXT YEAR AS MORE RESTRICTIONS EASE
• THERE WAS A SIGNIFICANT DROP IN BOOKING MOMENTUM FOR INTERNATIONAL FLIGHTS DUE TO NEWS OF OMICRON VARIANT
• AIRBUS A320NEO AND A220 AIRCRAFT WOULD START ARRIVING BY H1 FY24 AND DELIVERIES WOULD BE SPREAD OVER FOLLOWING 10-PLUS YEARS