Will QAN survive?, page-2350

So now that we have certainty of a path to full reopening and with no more "hope" left to look forward to, how will Qantas justify ongoing losses for the next few years? My prediction is that after Alan Joyce whinges about everybody else being at fault for this, he'll end up resigning.

One thing is for sure: Qantas will incinerate all of the cash reserves that they have before becoming economically sustainable again and will need to undertake a capital raising or, less likely, raise debt. I believe that a capital raising will be necessary because they already have a NEGATIVE net tangible asset value (yes.. what a joke). They need to fix up their balance sheet and this will be the only way.

A post covid world is a bad one for Qantas. Requirements for double vaccination and increased paperwork, fears of catching covid due to travel, acceptance of online meetings, etc will mean that revenues will not return to what they were for a long, long time to come. Add to that increasing costs from increasing interest rates, increasing oil price, administration of whatever covid rules remain, and you can be sure that Qantas will remain a perpetual loss making business for years to come.

This has been one of the dumbest examples of the post covid market bubble. Now it's time to get back to fundamental reality of a business that will imminently struggle in a world that has changed for the worse.