After the news about Qantas is expecting a $2bn loss this financial year, Australia’s Premier Airline announces more retrenchment for the international cabin crew.
Since the coronavirus is still here and this pandemic still hinders travels from international flights, Qantas decided on more job cuts for the international cabin crew and to freeze wages in the meantime due to financial constraints.
The major airline revealed a new voluntary redundancy program for the international crew as part of the additional cost reduction due to this pandemic, this was the trading update this Thursday.
Around 6000 workers have remained rested over the cabin crew, and the new workers’ excess losses their job on top of the already 8500 roles that the company has been cut.
The payments for the travel agents on international ticket bookings will also drop from around 5% to 1% that will probably start in July 2022 next year.
This new evaluation harmonized with what the company said about its huge obligations bill that is starting to decline but anticipates dropping while its international travel operations remain on hold until at least the end of this year.
This major airline informed the consumers’ confidence had returned to local travel, but the considerable costs relating to redundancies, aircraft writedowns, and devaluation charges would likely due to a legitimate loss for the financial year 2021 that excess of $2bn.
The recovery would be long, but the company was beginning to turn a corner said Qantas chief executive Alan Joyce.
Mr. Joyce said that the fact we’re making inroads to the debt they needed to get through this crisis shows the business is now on a more sustainable footing, the main driver is the rebound of domestic travel, which now looks like it will be bigger than it was pre-COVID, at least until international borders reopen.
The basic earnings before the interest, tax, depreciation, and amortization is tipped to hit about a range of $400-450m for FY21. According to the net debt levels peaked in February was $6.4bn, with Qantas believing the debt will drop at the end of this financial year 2021.
Mr. Alan Joyce said that they’ve adjusted their expectations for when international borders will start opening based on the government’s new timeline, but their fundamental assumption remains the same – that once the national vaccine rollout is effectively complete, Australia can and should open up. That’s why they have aligned the date for international flights restarting in earnest with a successful vaccination program.
All of the domestic aircraft are now back in service, with Qantas and Jetstar, they are expected to reach a capacity average of 107% and 120% respectively above pre-pandemic levels during the next financial year this 2021.
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