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Australian airline Qantas reports new losses

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Australian airline Qantas reported annual losses of over $1 billion on Thursday after a ‘diabolical’ year marred by travel restrictions.

As a result of the pandemic, Qantas has lost 16 billion Australian dollars in turnover since its inception, according to its CEO Alan Joyce, and the cost could rise to 20 billion Australian dollars by the end of 2021.

As of June 30, the country’s flagship airline had incurred underlying pre-tax losses of A$1.83 billion, a figure that rises to A$2.35 billion when one-time costs such as redundancy payments and aircraft shutdowns are added in.

As a result of the pandemic’s impact on airlines around the world, the group had already suffered a deficit of more than 1.5 billion euros in the previous financial year.

As a result of the pandemic, Qantas has lost 16 billion Australian dollars in turnover since its inception, according to its CEO Alan Joyce, and the cost could rise to 20 billion Australian dollars by the end of 2021.

“These losses show the impact that a full year of international border closures and more than 330 days of domestic flight restrictions have had on the national airline,” he said in a statement. “Commercial conditions have been downright diabolical,” he added.

International flights are expected to return
The company said that open borders between Australian states in early 2021 temporarily boost revenues, but the return of restrictions on domestic flights after the Delta variant appeared in Sydney led to most flights being cancelled.

With nearly 47,000 Covid-19 infections and 986 deaths, Australia is facing a resurgence of the virus, which has forced half its population into quarantine.

Recently, Qantas announced that 2,500 employees would be sent on unpaid leave, and thousands of pilots and crew members had already been sent on unpaid leave or laid off during 2020.

With its sights set on high-vaccination destinations such as the United States, Britain, and Singapore, the airline is hoping to resume international flights by the end of the year.

As of yet, none of the airline’s previous predictions about resuming long-haul flights have come true, nor has the government announced when strict Australian border controls will be relaxed.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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