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BRIEF-Qantas Airways Sees Coronavirus Impact On FY20 Underlying EBIT At $100 Mln-$150 Mln

Published 20/02/2020, 12:11 pm
© Reuters.  BRIEF-Qantas Airways Sees Coronavirus Impact On FY20 Underlying EBIT At $100 Mln-$150 Mln
QAN
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Feb 20 (Reuters) - Qantas Airways Ltd QAN.AX :

* IMPACT OF CORONAVIRUS ON FY20 UNDERLYING EBIT ESTIMATED AT $100 MILLION - $150 MILLION

* SEES IMPACT OF CORONAVIRUS AFTER CAPACITY ADJUSTMENTS, LOWER FUEL COSTS ON FY20 UNDERLYING EBIT

* GROUP CAPACITY IN 2H20 IS EXPECTED TO DECLINE BY 3.8 PER CENT ACROSS INTERNATIONAL

* FUEL COST BEFORE CAPACITY REDUCTIONS IS EXPECTED TO BE $3.85 BILLION IN FY20

* GROUP CAPACITY IN 2H20 IS EXPECTED TO DECLINE BY 2.3 PER CENT IN DOMESTIC

* TRANSFORMATION BENEFITS EXPECTED TO BE $400 MILLION IN FY20

* GROUP INTERNATIONAL CAPACITY TO ASIA CUT BY 15% TO AT LEAST END OF MAY DUE TO CORONAVIRUS

* GROSS CAPITAL EXPENDITURE IS EXPECTED TO BE $2.0 BILLION FOR FY20, WITH $1.3 BILLION OF THIS SPENT IN FIRST HALF

* FOR FY20 UNDERLYING DEPRECIATION AND AMORTISATION NET OF INTEREST EXPENSE EXPECTED TO BE ABOUT $100 MILLION HIGHER THAN FY19

* ANNOUNCES OFF-MARKET SHARE BUY-BACK OF UP TO $150 MILLION

* IN FY20 SALE OF DOMESTIC TERMINALS IS EXPECTED TO REDUCE EARNINGS BY $100 MILLION, INCLUDING $70 MILLION NON-CASH.

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