Home » News » Qantas posts loss for third year in a row, relaunches Auckland-JFK route

25 August, 2022

Qantas posts loss for third year in a row, relaunches Auckland-JFK route

Melbourne, Australia - April 29, 2018: People waiting for departure in airport terminal.

By James Harrison

The Qantas Group has posted its third consecutive loss of more than $1b in its FY22 report.

Qantas cited the Delta and Omicron COVID variants and the associated lockdowns and travel restrictions that came with them.

For the full 2022 financial year, the Group experienced an underlying loss before tax of $1.86b and a Statutory Loss Before Tax of $1.19b. The difference between these two measures largely reflects the $686m net gain on the sale of surplus land, which helped reduce COVID-related debt.

Qantas’ FY22 underlying loss before tax is slightly worse than its FY21 report which saw the group post a $1.83b loss.

“This result takes the Statutory Loss Before Tax impact of COVID on the Qantas Group to nearly $7b and our total revenue losses to $25b,” Qantas CEO Alan Joyce said.

“These figures are staggering and getting through to the other side has obviously been tough.”

The Group’s flying levels overall were at 33 per cent of pre-pandemic levels but finished at 68 per cent in the fourth quarter of this past financial year.

“The past year has been challenging for everyone. We had to ramp down almost all flying once Delta hit and stay that way for several months before ramping back up through multiple Omicron waves as we all learned to live with COVID in the community,” Joyce said.

Qantas’ net debt has fallen from a high of more than $6.4 billion to $3.9 billion at the end of FY22 and the airline said that cancellation rates and mishandled bag rates are trending back towards pre-COVID standards during August 2022.

“We saw a big improvement in baggage handling and cancellations in August, which we expect will return to pre-COVID standards next month. On time performance also improved significantly and should be close to our usual high standard in September,” Joyce said.

This followed Qantas copping backlash over high rates of flight cancellations and delays and missing luggage, stirring controversy for the airline.

Total domestic flying averaged 63 per cent of pre-COVID levels for the year and reached 103 per cent by 30 June. Group Domestic had a full year underlying EBIT loss of $1.1b and revenue intakes from business purpose travel in the fourth quarter were around 90 per cent of pre-COVID levels.

Qantas’ International and Freight division recorded an underlying earnings before interest, taxes (EBIT) loss of $238m and Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) profit of $448m. The Group’s international capacity averaged just 17 per cent of pre-COVID levels for the year but rose to 49 per cent by 30 June.

Alongside the Group’s FY22 report, Qantas announced it will recommence Auckland-New York flights from 14 June 2023.

The resumption of QF3 and QF4 will see the flying kangaroo return to New York three days a week initially, after a three-year COVID-induced hiatus. Flights will be operated on its Boeing 787 Dreamliners, with three new aircraft scheduled for delivery next year.

Joyce said flying via Auckland would provide better connectivity from more destinations in Australia, before an uninterrupted 16 hour flight to New York.

“We’re back flying to most of our pre-COVID destinations, which is a fantastic achievement by our teams and so important for Australians reconnecting with the rest of the world,” Joyce said.

The airline also announced that it will upgrade its lounge network, with a multi-million dollar investment to build new lounges in Adelaide, Auckland, Port Hedland and Rockhampton.

Qantas has now reopened almost all of its 51 domestic and international lounges, including its Los Angeles First Lounge earlier this month.

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