March 10 (Reuters) - Qantas Airways Ltd QAN.AX :
* QANTAS GROUP UPDATE ON CORONAVIRUS RESPONSE
* ANNOUNCED FURTHER CUTS TO ITS INTERNATIONAL FLYING, REDUCING CAPACITY BY ALMOST A QUARTER FOR NEXT SIX MONTHS
* DOMESTICALLY, QANTAS AND JETSTAR CAPACITY REDUCTIONS WILL BE INCREASED FROM 3 PER CENT TO 5 PER CENT THROUGH TO MID-SEPTEMBER 2020
* ADDITIONAL CHANGES WILL BRING TOTAL INTERNATIONAL CAPACITY REDUCTION FOR QANTAS, JETSTAR FROM 5% TO 23% VERSUS SAME TIME LAST YEAR
* BIGGEST REDUCTIONS REMAIN FOCUSSED ON ASIA, NOW DOWN 31 PER CENT COMPARED WITH SAME PERIOD LAST YEAR
* GROUP'S TOTAL CAPACITY REDUCTION CHANGES FROM 4 PER CENT (ANNOUNCED ON 20 FEBRUARY) TO 17 PER CENT FOR LAST QUARTER OF FY20
* RATHER THAN EXIT ROUTES ALTOGETHER, CO WILL USE SMALLER AIRCRAFT & REDUCE FREQUENCY OF FLIGHTS TO MAINTAIN OVERALL CONNECTIVITY
* START OF QANTAS' NEW BRISBANE-CHICAGO ROUTE WILL BE DELAYED FROM 15 APRIL TO MID-SEPTEMBER.
* JETSTAR WILL MAKE SIGNIFICANT CUTS TO ITS INTERNATIONAL NETWORK
* FURTHER TWO A380S ARE UNDERGOING SCHEDULED HEAVY MAINTENANCE AND CABIN UPGRADES, LEAVING TWO OF ITS A380S FLYING
* FOR REMAINDER OF FY20 QANTAS CHAIRMAN WILL TAKE NO FEES
* FOR REMAINDER OF FY20 GROUP CEO WILL TAKE NO SALARY
* CAPACITY REDUCTIONS TO U.S DOWN 19%, UK DOWN 17% AND TRANS-TASMAN DOWN 10 % WILL ALSO BE MADE IN LINE WITH FORWARD BOOKING TRENDS
* FOR REMAINDER OF FY20 QANTAS BOARD WILL TAKE A 30 PER CENT REDUCTION IN FEES
* FOR REMAINDER OF FY20, GROUP EXECUTIVE MANAGEMENT WILL TAKE A 30 PER CENT PAY CUT.
* EIGHT OF AIRLINE'S LARGEST AIRCRAFT, AIRBUS A380, TO BE GROUNDED UNTIL MID- SEPTEMBER
* FOR REMAINDER OF FY20 ASKING ALL QANTAS AND JETSTAR EMPLOYEES TO TAKE PAID OR UNPAID LEAVE IN LIGHT OF REDUCED FLYING ACTIVITY
* EXPECT LOWER DEMAND TO CONTINUE FOR NEXT SEVERAL MONTHS
* "WE RETAIN FLEXIBILITY TO CUT FURTHER OR TO PUT CAPACITY BACK IN AS THIS SITUATION DEVELOPS.
* GROUP'S FY20 TOTAL FUEL COST IS NOW EXPECTED TO BE $3.74B3 WITH LIMITED PARTICIPATION TO FURTHER FALLS IN BRENT CRUDE PRICES
* MATERIAL DROP IN FUEL PRICE HAS PROVIDED A SIGNIFICANT COST BENEFIT IN ADDITION TO SAVING FROM LOWER CONSUMPTION
* QANTAS AND JETSTAR WILL WAIVE CHANGE FEES FOR NEW INTERNATIONAL BOOKINGS MADE FROM MARCH 10 UNTIL END OF MARCH
* DECIDED TO CANCEL OFF- MARKET BUYBACK ANNOUNCED IN FEBRUARY, WHICH WILL PRESERVE $150 MILLION IN CASH
* EXISTING SYDNEY-SINGAPORE-LONDON RETURN SERVICE WILL BE TEMPORARILY RE-ROUTED TO BECOME SYDNEY-PERTH- LONDON SERVICE FROM 20 APRIL
* DISRUPTION TO DOMESTIC PASSENGERS IS EXPECTED TO BE MINIMAL GIVEN CONTINUED HIGH FREQUENCY ON MOST ROUTES.
* START OF CO'S NEW BRISBANE-CHICAGO ROUTE WILL BE DELAYED FROM 15 APRIL TO MID-SEPTEMBER
* GROUNDING 38 QANTAS AND JETSTAR AIRCRAFT ACROSS INTERNATIONAL AND DOMESTIC NETWORK