This archive report was first published on 25 June 2020.
Published on June 25, 2020, Qantas Airways announced plans to cut 6,000 jobs, approximately 20% of its workforce, as part of a cost-saving plan due to the COVID-19 pandemic.
The airline will spend around $600 million on related payments, with half of the job cuts affecting ground operations staff and non-operational staff, and the rest being a mix of cabin crew, engineers, and pilots.
Additionally, 15,000 workers will remain furloughed until Qantas begins operating more flights, with the airline expecting to reach 40% of normal capacity in July, an average of about 70% next financial year, and 100% in FY2022.
Qantas Airways will also ground 100 aircraft for up to 12 months and retire its remaining Boeing 747 fleet immediately, six months ahead of schedule, and defer deliveries of recent Airbus A321neo and Boeing 787-9 planes.
The airline plans to raise up to $1.3 billion through a share sale under the cost-saving plan, which includes reduced fuel expenses and is expected to save around $10.3 billion.
With international operations on hold, Qantas estimates to take an impairment charge of up to $962 million, mostly due to its fleet of 12 Airbus A380s, which are not expected to fly again for at least three years and would be sent to the Mojave Desert for storage.
Qantas Airways Limited is Australia's flag carrier and the largest airline by fleet size, international flights, and international destinations, with the company expecting a hit of $2.8 billion in its full-year accounts as a result of the coronavirus crisis.
