Business

Covid-19 ‘existential crisis’ over, says Qantas 

Australian carrier has lost RM76 billion in revenue throughout pandemic

Updated 4 years ago · Published on 25 Aug 2022 12:30PM

Covid-19 ‘existential crisis’ over, says Qantas 
Australian national carrier Qantas announces today that its business has started to bounce back after three years of pandemic turmoil – AFP pic, August 25, 2022

SYDNEY – Australian national carrier Qantas reported today that its business had started to bounce back after three years of pandemic turmoil, which cost the airline US$17 billion (RM76 billion) in revenue.

“These figures are staggering and getting through to the other side has obviously been tough,” chief executive Alan Joyce said.

“We always knew travel demand would recover strongly but the speed and scale of that recovery have been exceptional.”

By the end of June, domestic travel was above pre-pandemic levels, Qantas reported, with 20 new routes added to meet the demand for leisure travel around Australia.

A sluggish rebound in international travel – still lagging below 50% of pre-pandemic highs – was “offset by a record performance” in the group’s freight business.

But the fourth quarter travel surge was not enough to make up for a year plagued by Omicron and Delta wave lockdowns, which caused a third straight loss before tax of AUD$1.2 billion (RM3.7 billion).

Releasing its full-year results today, Qantas declared that “the existential crisis posed by the pandemic (was) now over” and it would shift focus to operational challenges.

Earlier this month, the airline asked its senior executives to work as baggage handlers because of labour shortages – a serious issue across Australia’s long-locked-down economy.

The move was controversial because Qantas had sacked about 2,000 ground staff during Covid-19 lockdowns – a mass axing Australia’s Federal Court ruled as illegal in May.

Qantas has vowed to appeal the verdict to the high court.

Earlier this week, Joyce apologised to Qantas customers for the lengthy delays at airports across the country as travel rebounded, offering flight vouchers to frequent flyers worth AUD$50.

“Over the past few months, too many of you have had flights delayed, flights cancelled and bags misplaced... it’s not good enough,” he said.

“On behalf of the national carrier, I want to apologise and assure you that we’re working hard to get back to our best.” – AFP, August 25, 2022

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