Qantas to cut more domestic capacity after W. Australia delays border opening
Reuters
Published Jan 21, 2022 12:17AM ET
Updated Jan 21, 2022 01:05AM ET
SYDNEY (Reuters) - Qantas Airways Ltd will cut domestic capacity by 10 more percentage points, to 60% of pre-pandemic levels, in the March quarter after the state of Western Australia indefinitely delayed opening its border, the carrier said on Friday.
The opening planned for Feb. 5, was cancelled late on Thursday, with authorities in Western Australia citing health risks from a surge in the Omicron variant of coronavirus in eastern states.
In a statement, Qantas said, "The group retains the flexibility to adjust flying levels depending on demand and clarity on border re-opening in the weeks and months ahead."
Last week, the airline had pared about a third of planned domestic and international capacity in the March quarter, to better match demand amid rising COVID-19 infections.
Preparing for a surge in demand, it had recently recalled about 11,000 staff who had been idled without pay during the pandemic.
The move increased fixed costs and the recent capacity cuts will squeeze revenue and reduce margins.
Qantas, which ends its financial year in June, said it would give more details on the impact of the changes in half-year results late next month.
Rival Virgin Australia said it would review its flight schedule to Western Australia to keep in line with the state's arrangements to re-open its borders.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.