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BRIEF-Qantas Expects Significant Underlying Loss In FY21

Published 20/08/2020, 08:45 am
© Reuters.
QAN
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Aug 20 (Reuters) - Qantas Airways Ltd QAN.AX :

* RECOGNISED $571 MILLION OF DE-DESIGNATED HEDGE LOSSES IN FY20 STATUTORY RESULT

* GIVEN CURRENT BORDER RESTRICTIONS, 20 PER CENT OF PRE-COVID GROUP DOMESTIC CAPACITY IS SCHEDULED FOR AUGUST

* EXPECTING A SIGNIFICANT UNDERLYING LOSS IN FY21

* IN QANTAS FREIGHT DOMESTIC DEMAND EXPECTED TO REMAIN STRONG DUE TO GROWTH IN E-COMMERCE

* IN DOMESTIC BUSINESS, RECENT SALES ACTIVITY SHOWS HIGH LEVELS OF LATENT TRAVEL DEMAND WHEN RESTRICTIONS ARE EASED

* AROUND 4,000 OF AT LEAST 6,000 REDUNDANCIES EXPECTED TO BE FINALISED BY END-SEPTEMBER 2020, WITH CONTINUED UNION CONSULTATION

* AS AT 30 JUNE 2020, NET DEBT WAS $4.7 BILLION

* INTERNATIONAL NETWORK UNLIKELY TO RESTART BEFORE JULY 2021; POSSIBLY EARLIER FOR TRANS TASMAN

* IN QANTAS FREIGHT STRONG INTERNATIONAL FREIGHT DEMAND EXPECTED TO CONTINUE BUT NOT AT PEAK LEVELS SEEN IN 4Q20

* ONGOING STAND DOWN OF AROUND 20,000 EMPLOYEES, ENABLING RETENTION OF CORE SKILLS UNTIL WORK RETURNS

* LOYALTY EXPECTED TO CONTINUE STRONG CASH FLOW CONTRIBUTION IN FY21

* "AT LEAST 6,000 OF OUR PEOPLE WILL LEAVE BUSINESS THROUGH NO FAULT OF THEIR OWN, AND THOUSANDS MORE WILL BE STOOD DOWN FOR A LONG TIME"

* SIGNIFICANT FURTHER CAPITAL EXPENDITURE REDUCTIONS ARE FORECAST IN FY21

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