The Qantas group at a loss due to Covid. However, the situation improves

Qantas Group posted a substantial full-year loss due to the Covid crisis, but it started the new fiscal year in a fundamentally better position to address uncertainty and manage its recovery than 12 months ago.

Total revenue loss from Covid reached $ 16 billion as the year-round impact of minimal international travel and multiple waves of domestic border restrictions continued to affect travel demand.

The Group’s underlying PBT loss was $ 1.83 billion. The pre-tax legal loss, which includes one-off costs such as aircraft layoffs and writedowns, was $ 2.35 billion. Ebitda was 410 million dollars, in line with the indications provided in May.

The periods of opening national borders in the second half saw significant cash generation by Qantas and Jetstar, which helped the Group reduce its net debt from $ 6.4 billion in February 2021 to $ 5.9 billion. dollars by the end of June. Throughout the year, cash flow was supported by Qantas Loyalty’s continued strong performance and Qantas Freight’s significantly higher international yields.

In addition to providing essential service in very difficult circumstances, the group has made significant progress towards its rehabilitation program. The planned downsizing is largely completed and many renovations have been implemented. At the heart of these changes has been the ability to better manage costs in the face of sudden border closures.