Qantas has agreed more than A$1 billion of additional debt funding as it battles to secure its future through the coronavirus pandemic.
The ten-year loan has been secured against seven of the group’s fleet of 11 Boeing 787-9 Dreamliners, which were bought with cash in recent years.
The funding increases the company’s available cash balance to A$2.95 billion with an additional A$1 billion undrawn facility remaining available.
The financial boost follows Qantas and budget sister carrier Jetstar cutting 90% of international and 60% of domestic flights with 150 aircraft grounded and two thirds of 30,000 staff stood down until at least the end of May.
The group said: “As previously announced, various steps have been taken to significantly reduce activity levels and costs given the dramatic revenue impact of the coronavirus pandemic and the related travel restrictions on Jetstar and Qantas passenger services.”
Chief executive Alan Joyce said: “Over the past few years we’ve significantly strengthened our balance sheet and we’re now able to draw on that strength under what are exceptional circumstances.
“Everything we’re doing at the moment is focused on guaranteeing the long-term future of the national carrier, including making sure our people have jobs to return to when we have work for them again.”