Qantas (ASX: QAN) airline has reported a record loss of almost A$2bn (£1bn) – the worst financial loss in over a century.
As travel restrictions have hit the global airline sector, the Australian airline also warned the loss to continue into the next year.
Alan Joyce, the chief executive, said in a statement: “The impact of Covid on all airlines is clear. It’s devastating and it will be a question of survival for many. Recovery will take time and it will be choppy.”
Earlier this year, Qantas Group announced plans to axe 6,000 jobs – a fifth of the airline’s workforce The first 4,000 of these job losses are expected to be finalised by the end of August.
Joyce attacked the Australian government for closing borders. Following the results, there have been renewed calls for a government rescue package for the sector.
Transport Workers Union’s national secretary, Michael Kaine, said: “The shocking Qantas losses are an indication of just how sick our industry is. It must surely be only a matter of time before Qantas follows Virgin in requesting help from the federal government to stay alive.”
