Last week on Thursday, Qantas Airways, an Australian airline company, announced that it may not return with their international flights until July 2021. This comes as the aviation industry is suffering in the pandemic as demand for air travel has significantly dwindled.
Carrier Through the Pandemic
Like the other carriers in different parts of the world, Qantas Airways is seeing a bleed in cash. Their loss in the fiscal year which ended in June, amounted to 2.7 billion Australian dollars (US$1.9 billion). It is almost a 91 percent decline from the year before.
Qantas Airways also reckoned that the second half of the fiscal year 2020 laid the “toughest set of conditions” their almost a hundred-year-old company had faced.
However, its chief executive Alan Joyce said they are actually in a “better financial position” compared to other carriers, in terms of navigating the health crisis. “We have the lowest cash burn, we believe, of any major airline group in the world,” Joyce remarked.
Halted Global Flights
Per the airlines’ CEO, their international flights operations will be paused until mid of 2021. Their American flights will, however, depend on the coronavirus vaccine availability, Joyce noted in a USA Today article.
With overseas flights grounded for at least another year, Qantas Airways scraps the executive role overseeing international services https://t.co/unoPOCx4vG
— Bloomberg (@business) August 24, 2020
“The US, with the level of prevalence there, is probably going to take some time. It’s probably going to need a vaccine before we could see that happening,” Joyce said. He also noted that it is possible that a vaccine may be available by the “middle or the end of next year.” They are seeing routes to America may be serviced by the end of 2021.
Meanwhile, routes for other countries will depend on the spread of the COVID-19. “New Zealand is an obvious example that should potentially open up relatively fast compared to other countries around the world,” the Qantas Airways chief mentioned.
Furthermore, in order to also adapt to the pandemic, the company also considers axing at least 6,000 of its employees, according to Joyce. “We’ve had to make some very tough decisions in the past few months to guarantee our future,” the CEO said in a CNN news report. “Recovery will take time and it will be choppy.”