The impact of Delta lockdowns and emergence of the Omicron strain have driven the Qantas Group to its fourth consecutive half-yearly statutory loss of the pandemic.
However, it reported “some tailwinds” were accelerating to help the Australian airline repair its balance sheet in the second half of 2021.
Its underlying loss before tax was AUD1.28 billion (£680 million), compared to just over AUD1 billion in the same period of 2020.
Flying operations were “severely impacted” by widespread domestic lockdowns and continued international restrictions, reducing the group’s total flying to 18% of pre-Covid levels during the half.
However, it started to repair its balance sheet thanks to cash from the sale of under-utilised land; a rush of flight bookings as the Delta lockdowns ended; international border closures easing in the second quarter; and strong contributions from Qantas Freight and Qantas Loyalty.
Alan Joyce, Qantas Group chief executive, said: “Most of Australia was in lockdown for several months of the first half, so the loss we’ve announced today isn’t surprising but it is frustrating.
“We saw a sharp rebound in travel demand when borders started opening in November and December, only to be hit by the Omicron wave and all the uncertainty that came with it.
“The uncertainty carried over into January but demand has started to recover as Australia adjusts to truly living with Covid.
“We’ve also seen a sharp uptick in international ticket sales in the past few weeks.”
Looking to 2022, the group’s international capacity is expected to be 22% of pre-Covid levels in the third quarter, increasing to 44% in the fourth.
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