Today’s updates from Qantas Group CEO, Alan Joyce.
Qantas today released some major headlines with the sacking of more than 6,000 workers, the launch of a significant billion dollar capital raise and a major announcement on the future of international flights.
At the press conference this morning, Qantas CEO Alan Joyce announced the sacking of more than 6,000 workers, the launch of a significant billion-dollar capital raise, and a major announcement on the future of international travel as they expecting international flights to resume until at least July 2021.
Providing further context on the future of international flights My Joyce stated “There’ll be nothing this next financial year, July next year we may start seeing some international services and that will only get us to 50 percent. The following year, only two-thirds of the pre-COVID international schedule.”
“The Qantas Group entered this crisis in a better position than most airlines and we have some of the best prospects for recovery, especially in the domestic market, but it will take years before international flying returns to what it was.”Qantas Group CEO, Alan Joyce
As for the job cuts in a time where majority of Australia’s are feeling the pinch of a looming recession on the horizon it was a hard decision for Joyce to make but one that was essential for the survival of Qantas. “We have to position ourselves for several years where revenue will be much lower. And that means becoming a smaller airline in the short term.”
“Despite the hard choices we’re making today, we’re fundamentally optimistic about the future. Almost two-thirds of our pre-crisis earnings came from the domestic market, which is likely to recover fastest – particularly as state borders prepare to open.”
“We still have big ambitions for long haul international flights, which will have even more potential on the other side of this.”
Whether other airlines will follow suit is currently unclear. But for now it seems more than ever we are all in this together – literally it seems as the ability to travel outside (and into) of Australia becomes less and less likely.
This however means, Tourism Australia and each individual state/territory will now have to focus internally and help drive and support local tourism above all else.
And if there is any positive to be taken from the recent turn of events is the success of the Jetstar $19 flights sale.
Jetstar’s sale set new records with almost 70,000 of its 200,000 seat sale selling in the first five hours. All 10,000 $19 fares were snapped up in just four hours of the sale going live.
With local airline and tourism working together – perhaps now is the best time to explore within Australia.
Read the full Qantas announcement via qantasnewsroom.com.au.
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