Underlying Profit Before Tax: $124 million (down 91%)
Statutory Loss Before Tax: $2.7 billion (majority of which is non-cash, including aircraft
write downs)
$4 billion revenue impact from COVID crisis in 2H20
Operating cash flow: $1.1 billion
Liquidity of $4.5 billion providing considerable buffer to manage uncertainty
Significant progress on initial steps of three-year recovery plan
OUTLOOK
The Group’s recovery plan allows for a high level of flexibility given uncertainty on border restrictions and travel demand, while also acknowledging the critical nature of air transport to the Australian economy. Key assumptions and indicators at this stage include:
Group Domestic
Given current border restrictions, 20 per cent of pre-COVID Group Domestic capacity is scheduled for August.
Recent sales activity shows high levels of latent travel demand when restrictions are eased.
Group International
International network unlikely to restart before July 2021; possibly earlier for Trans Tasman.
Loyalty
Expected to continue strong cash flow contribution in FY21.
Recovery in domestic travel an opportunity to increase reward seats and maintain member engagement.
Actively growing opportunity to earn points on the ground, but this is linked to broader consumer confidence levels.
Qantas Freight
Domestic demand expected to remain strong due to growth in e-commerce.
Strong international freight demand expected to continue but not at peak levels seen in 4Q20.
