Qantas reports huge loss but even bigger revenue
Qantas CEO Alan Joyce has announced a whopping $1.9 billion loss for the 2022 Financial Year.
Following almost two years of next to no flights due to the Covid pandemic, Mr Joyce explained that flights are “all full” as they push to get them out of storage.
He however revealed that despite air travel resuming, his company has faced a devastating loss but quite an impressive revenue.
“The Group had an underlying loss before tax of almost $1.9 billion, and a statutory loss before tax of just under $1.2 billion,” Mr Joyce said.
“That brings our total losses since the start of the pandemic to more than $7 billion and takes lost revenue to more than $25 billion.
“To put that in perspective, on a statutory basis, COVID cost us more money in the past three years than we made in the five years before that.
“The fact we’ve been able to steer through this is remarkable. And now that we are through it, things are improving even faster than we expected.”
Mr Joyce then noted the frustration felt by flyers due to delayed and cancelled flights, lost luggage, and labour shortage.
He said that they are working toward improving customers’ experience as leisure flying soared to 125 per cent of pre-Covid levels and business travel to 90 per cent.
“As many of you have probably experienced, strong travel demand has also brought some difficulties,” he continued.
“We knew the recovery was coming and we were ready for the restart. What we weren’t ready for – after 18 months of COVID being suppressed – was such high levels of community transmission and the sick leave that followed.
“The rebound in travel demand also coincided with a massive labour shortage. Of course, that shortage has been more acute in aviation because of how many people left the industry during two very uncertain years.
“All of this resulted in well-publicised problems: long queues, delayed flights and misplaced bags.
“It was incredibly tough for our people and deeply frustrating for our passengers. It simply wasn’t good enough, and for that, we have apologised.”
Mr Joyce revealed that the company has hired more than 1,500 staff since April, with more new recruits to come in the next few months.
“We’re reducing our domestic flying – in part – to give us more buffer. We are rostering more crew across fewer flights, which means we can better cover sick leave that is averaging almost 50 per cent above normal,” he continued.
“We’re also investing more in technology, including an upgrade to our airport kiosks and bag drop facilities, as well as new scanners at boarding gates.”
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