Qantas has reported its third consecutive annual loss because of the coronavirus pandemic, as border closures and travel uncertainty due to the Delta and Omicron waves weighed on earnings.
Australia’s national carrier posted a full-year underlying pre-tax loss of $1.86 billion, taking the group’s total losses throughout the pandemic to nearly $7 billion.
WATCH THE VIDEO ABOVE: Qantas offers flight credits following delays.
For more Travel related news and videos check out 7Travel >>
“These figures are staggering and getting through to the other side has obviously been tough,” CEO Alan Joyce said on Thursday.
“The past year has been challenging for everyone.”
It comes just days after the airline’s unprecedented apology to passengers, offering $50 discounts and extra lounge invites for frequent flyers.
People are flying again after the easing of pandemic restrictions but the national carrier simply was not ready, with the airline plagued by long queues, delayed flights, lost luggage and labour shortages after 10,000 redundancies were made.
“We’re the first to admit we haven’t got anything right lately,” Joyce conceded.
Revenue for the year jumped 53.5 per cent to $9.11 billion following a revival in global air travel after restrictions eased.
Qantas shares jumped after the results, which were broadly in line with analyst estimates.
By 3pm (AEST), the stock was up 6.4 per cent to $4.83 in a firm Australian market.
Qantas said flying levels for the year averaged 33 per cent of pre-pandemic levels after COVID outbreaks disrupted air travel, but finished the financial year at 68 per cent, spurred by a strong rebound in travel demand.
“We always knew travel demand would recover strongly, but the speed and scale of that recovery has been exceptional,” Joyce said.
WATCH THE VIDEO BELOW: The iPhone travel hack you didn’t know about
iPhone travel hack you didn’t know about.
iPhone travel hack you didn’t know about.The carrier’s net debt is down to $3.9 billion at the end of FY22, from a high of $6.4 billion.
Qantas said long periods of low activity combined with restart costs resulted in a full-year underlying loss of $1.1 billion at its domestic operations, which include low-cost carrier Jetstar.
However, it said sustained recovery in domestic travel demand translated into positive earnings for the fourth quarter.
Heavy losses in the group’s international passenger business were again offset by a record performance of Qantas Freight, which has benefited from high yields amid shortage of cargo space globally.
Overall, Qantas’ International and Freight division posted an underlying loss of $238 million.
Qantas said its loyalty program’s earnings growth accelerated to double digits in the second half.
Qantas averaged just 33 per cent of pre-pandemic flying levels during FY22. Credit: JOEL CARRETT/AAPIMAGEThe airline says it is now focused on responding to current operational challenges.
It has spent several months trying to manage operational issues ranging from call centre wait times, staff shortages, flight delays or cancellations and lost or misplaced baggage.
The airline noted key customer measures are returning towards pre-pandemic standards, but said it will still reduce domestic capacity by 10 per cent, with capacity expected to be at 95 per cent of pre-COVID levels by December.
“Their intention is good. What they need is to have a realistic scheduling that will allow them to cover up for the absence of workforce, if that is the case,” said Gui Lohmann, a professor in air transport management at Griffith University.
“It’s better to offer less, be reliable and fulfil your commitment of a scheduled flight than trying to reset yourself to as you were previously, but being unable to do so because you don’t have the workforce. That could actually backfire,” he added.
– With 7NEWS
Lamborghini bursts into fireball after a high speed crash.
Lamborghini bursts into fireball after a high speed crash.
Read More