Big Loss, Qantas Temporarily Suspends International Flights

 One of the world's best airlines, Qantas Airways, will suspend international flights until October 2021. This is because they have suffered heavy losses.

This Australian airline reported a decline in revenue of USD 5.5 billion (around Rp. 77 trillion) during the second half of 2020. They ended up having to temporarily stop flights overseas due to the Covid-19 pandemic which is also uncertain when it will end.

In addition to the decline in revenue, Qantas also said that it is estimated that there will be a loss of AUD 1.1 billion (around Rp. 12 trillion) in the 6 months to 31 December 2021. Meanwhile, the legal loss is AUD 1.5 billion (nearly Rp. 17 trillion).

"These numbers are striking but not surprising," said Qantas CEO Alan Joyce, as quoted by Channel News Asia.

"A year ago, neither of us knew how much impact Covid-19 would have on the world or flights. This is definitely worse than anyone thought," he said.

"The closure of the borders means we lost nearly 100 percent of our international flights and 70 percent of our domestic flights (three-quarters of our revenue), around AUD 7 billion (around IDR 78 trillion)," he said.

Joyce noted that the company had seen AUD 4 billion (nearly IDR 45 trillion) in revenue decline during the first half of 2020, bringing the total impact of the pandemic to AUD 11 billion (IDR 123 trillion).

"That's a very large number, maybe a bigger number than other companies in Australia have experienced because of COVID-19," he told a news conference.

Joyce said, while their fleet was parked, Qantas would operate cargo flights.

In addition, Qantas is also increasing its domestic flight capacity. At the end of March, the capacity is predicted to reach 60 percent, while at the end of June it is estimated to touch 80 percent.

Meanwhile, Qantas has recorded a loss of AUD 1.9 billion (around Rp. 21 trillion) in a year on June 30 due to the COVID-19 pandemic.

These losses mean Qantas has to lay off 8,500 employees, with another 7,500 people suspended until international flights reopen. In terms of aircraft fleet, Qantas has grounded 100 aircraft.

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