May 20 (Reuters) - Qantas Airways Ltd (QAN) : QANTAS GROUP...

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

• QANTAS GROUP MARKET UPDATE-QAN.AX
• ON TRACK TO DELIVER $600 MILLION ONGOING COST REDUCTION IN FY21.
• UNDERLYING EBITDA OF $400-450 MILLION EXPECTED IN FY21
• NET DEBT HAS PEAKED AND STARTING TO DECLINE
• FORECAST STATUTORY LOSS BEFORE TAX OF MORE THAN $2 BILLION IN FY21
• FORECAST STATUTORY LOSS BEFORE TAX OF MORE THAN $2 BILLION IN FY21.
• EXPECTS TO BE UNDERLYING EBITDA POSITIVE IN RANGE OF $400 - 450 MILLION FOR FY21
• RECOVERY PROGRAM ON TRACK TO DELIVER $600 MILLION ONGOING COST REDUCTION IN FY21
• REVISED ASSUMPTION FOR PHASED RETURN OF MATERIAL INTERNATIONAL FLYING FROM LATE DECEMBER 2021 ONWARDS
• STATUTORY FREE CASH FLOW POSITIVE FOR 2H21
• LIQUIDITY LEVELS REMAIN STRONG WITH TOTAL FUNDS OF $4.0 BILLION AS AT 30 APRIL 2021
• TOTAL REVENUE LOSS FOR GROUP SINCE START OF COVID2 IS NOW PROJECTED TO REACH $16 BILLION BY END OF FY21
• DOMESTIC FLYING IS EXPECTED TO ALMOST DOUBLE BETWEEN FIRST AND SECOND HALF OF THIS FINANCIAL YEAR
• ON TRACK TO REACH 95 PER CENT OF ITS PRE-COVID DOMESTIC CAPACITY FOR Q4 OF FY21
• QANTAS AND JETSTAR HAVE NOW BROUGHT ALL DOMESTIC AIRCRAFT BACK INTO SERVICE
• QANTAS AND JETSTAR EXPECT TO AVERAGE 107 AND 120 PER CENT RESPECTIVELY OF THEIR PRE-COVID DOMESTIC CAPACITY IN FY22
• JETSTAR IS REACTIVATING UP TO FIVE BOEING 787-8S FOR DOMESTIC USE AS WELL AS SIX A320S ON LOAN FROM JETSTAR JAPAN
• FREIGHT IS EXPECTED TO EXCEED REVENUE IT ACHIEVED IN FIRST HALF OF FY21
• TARGET OF AT LEAST $1 BILLION IN ANNUAL COST REDUCTION BY FY23 IS WELL ON TRACK
• TWO-YEAR WAGE FREEZE WILL APPLY TO NEXT ROUND OF ENTERPRISE AGREEMENTS ACROSS GROUP, WITH 2 PER CENT ANNUAL INCREASES AFTER THAT
• MANAGEMENT WILL BE SUBJECT TO SAME WAGE CONDITIONS
• WILL LOWER FRONT-END COMMISSIONS PAID TO TRAVEL AGENTS ON INTERNATIONAL TICKETS FROM 5 PER CENT TO 1 PER CENT
• CHANGE IN COMMISSIONS PAID TO TRAVEL AGENTS WON'T TAKE EFFECT UNTIL JULY 2022
• OFFER OF VOLUNTARY REDUNDANCY FOR QANTAS INTERNATIONAL CABIN CREW
• SOME 16,000 ROLES ACROSS GROUP ARE CURRENTLY STOOD UP
• OFFER OF VOLUNTARY REDUNDANCY FOR QANTAS INTERNATIONAL CABIN CREW IN ADDITION TO JOB LOSSES ALREADY ANNOUNCED

Source text https://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=02376405

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