Qantas And Jetstar Slash Number Of International Flights Over Coronavirus

Qantas And Jetstar Slash Number Of International Flights Over Coronavirus

Qantas And Jetstar Slash Number Of International Flights Over Coronavirus

The decision means 38 planes will be grounded.

Qantas said it is not possible to provide any meaningful guidance on what the coronavirus outbreak will take out of its earnings for the remainder of the 2020 financial year.

Qantas shares have lost almost 38 percent of their value since then, falling almost 11 percent on Monday alone as the stock market plunged on fears over the spread of the coronavirus and diving oil prices.

The airline's share price has been decimated in recent weeks due to the coronavirus.

In December, shares in the airline reached an all-time high of $7.40 amid a wider upswing across the market.

The start of Qantas' new Brisbane-Chicago route will be delayed from April 15 to mid-September and low-priced offshoot Jetstar will make significant cuts to its global network.

When compared to the same period past year, capacity reductions remain most pronounced in Asia at -31%, followed by the USA at -19%, United Kingdom -17% and Trans-Tasman -10%.

Capacity reductions to the United States (down 19 per cent), the UK (down 17 per cent) and Trans-Tasman (down ten per cent) will also be made in line with forward booking trends.

The US is the next-most affected destination - a 19 per cent cut.

"The A350 is a fantastic aircraft and the agreement on the table with Airbus offers us the best possible combination of commercial conditions, energy efficiency, operating costs and customer experience", said Qantas Group CEO Alan Joyce in a press release at the time.

These moves, notes the airline, will enhance 'our ability to reduce costs as well as giving more certainty to the market, customers and our people'. In addition to cuts to its worldwide flight capacity, the carrier is actively seeking to delay the order of Airbus A350-1000s that were expected to operate the longest flight in the world.

To avoid job losses and redundancies, all Qantas and Jetstar staff have been asked to take either paid or unpaid leave.

Mr Joyce said Qantas was in a good position to overcome financial impact.

Airbus had set that deadline on the basis the production slots were potentially valuable and could be sold to other airlines, Joyce said.

Qantas said it would use smaller aircraft and reduce flight frequency, while it would alter some flight routes and delay the start of its new Brisbane to Chicago route from April to September.

Qantas has reduced domestic flight capacity by five per cent.

Additionally, Joyce would not take his salary for the next three months and the company's executive management team would see theirs cut by 30%.

Chairman Richard Goyder will take no fees. Board members and group executive management will also take a 30 percent cut in remuneration.

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