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Qantas says competition to intensify, will report large H1 loss -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Qantas crews clean and prepare an aircraft for international flight. This is in preparation of Australia’s easing of coronavirus diseases (COVID-19), border regulations at Sydney Airpor

SYDNEY – Qantas Airways Ltd announced on Thursday that domestic competition will intensify as the state borders are opened. The company had previously forecasted a first-half loss because of months-long lockdowns.

Separately, the airline stated that it will switch to Airbus SE (OTC) narrowbody aircraft from Boeing (NYSE) Co. However, they forecast a more than A$1.1billion ($788m) first-half underlying loss without interest or tax.

Qantas claimed it improved its liquidity situation during half by selling land close to Sydney Airport for A$802 millions. As of December 31, 2018, the close of Qantas’ first half, it expected to have A$5.6 trillion in net debt.

Qantas Chief Executive Alan Joyce released a statement stating that they had significantly decreased their cost base, which will improve our recovery ability.

Australia’s domestic airlines industry has been held back from the pandemic due to state border closings. However, new entrants in the jet market are challenging Qantas as well as its largest rival Virgin Australia.

($1 = 1.3959 Australian dollars)

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