Qantas extends flight cancellations until the end of July - as the airline prepares for its planes to potentially be grounded until December 2021
- Travel industry was brought to a crashing halt due to the coronavirus pandemic
- Qantas is preparing to lose $40million a week until the travel industry recovers
- Airline has secured $550million in debt to help the business survive the crisis
- Flight cancellations pushed back to the end of July but warned could be longer
- Here’s how to help people impacted by Covid-19
Qantas has pushed back its flight cancellations to the end of July but has warned its fleet could be grounded for much longer.
Holidaymakers may have to put their travel plans on hold for another year as the airline prepares for the coronavirus shutdown to potentially continue until December 2021.
The airline has secured $550million in debt to help the business survive the pandemic if it lasts as long as the worst estimates. It is preparing to lose $40million a week until the travel industry recovers.
Qantas (pictured: grounded plants in Sydney) has secured A$550 million in debt to help the business survive the pandemic
Since the pandemic escalated, Qantas has been operating at 5 per cent for its domestic capacity and 5 per cent of its international capacity (pictured: Returning travellers in Adelaide)
The money has been secured against three of its Boeing 787-9 aircraft. The airline said it could raise another $2.7billion from other aircraft assets if needed.
The funding comes on top of the $1billion it raised in March, giving the company enough liquidity to stay afloat until December 2021.
In an announcement to the ASX, the airline said it has 'sufficient liquidity to respond to a range of recovery scenarios, including one where the current trading conditions persist until at least December 2021'.
Since the pandemic escalated, Qantas has been operating at five per cent of its domestic capacity and five per cent of its international capacity.
Qantas chief executive Alan Joyce told the Sydney Morning Herald they were optimistic domestic travel will start returning earlier than first thought.
However, he said international travel, with the possible exception of New Zealand, could take years to return to normal.
'We don't know how long domestic and international travel restrictions will last or what demand will look like as they're gradually lifted,' he said.
About 25,000 of the company's 30,000 staff will remain stood-down until at least until the end of June.
Rival Virgin Australia went into voluntary administration two weeks ago, owing almost $7billion.
Qantas chief executive Alan Joyce said they were optimistic domestic travel will start returning earlier than first though
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