Qantas announces half yearly results for 2022

The national carrier has revealed its half yearly results, with one aspect of the airline’s recovery plan being more ‘frustrating’ than the rest.

The impact of last year’s devastating Delta lockdowns and the surge in Omicron cases has seen Qantas record its fourth consecutive half yearly statutory loss of the pandemic.

But the airline remains optimistic it can get back on the repair track as foreign tourists return to Australia and Aussies head back overseas.

Qantas reported an underlying $1.3 billion pre-tax loss for the six months until December 31 as ongoing lockdowns and new coronavirus strains almost brought travel to a standstill.

The Omicron strain alone triggered a negative impact of $650 million to Qantas and the airline’s net debt finished the half year at $5.5 billion, within the group’s target range.

“Most of Australia was in lockdown for several months of the first half, so the loss we’ve announced today isn’t surprising but it is frustrating,” Qantas CEO Alan Joyce said.

“We saw a sharp rebound in travel demand when borders started opening in November and December, only to be hit by the Omicron wave and all the uncertainty that came with it.

“Predictions in a pandemic are naturally fraught, so we always forecast according to the best information we have but with the agility to adjust as needed. The fact we have all our Australian-based employees back at work means it makes sense for us to fly where it’s cash positive to do so.”

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Qantas has released their half year results. Picture: James D Morgan/Getty Images

The airline also saw some positivity in the past six months, but also that some state border decisions — or lack thereof — had further added to the airline’s loss.

“In the past few weeks, as more border restrictions have dropped away, we’ve seen international bookings strengthen even further,” Mr Joyce said.

“In mid-February, we had our best week for international ticket sales since pre-Covid.

“We’ll get more positive momentum from Western Australia opening in March. Qantas certainly wasn’t the only business caught short when that opening was delayed. We had relied on that date and we’ve lost more than $60 million as a result. Not to mention the thousands of customers who were disappointed. Hopefully, we can count on this new date and rebuild confidence in travelling to Western Australia.”

Qantas CEO Alan Joyce said the moving of WA’s border reopening had cost the airline more than $60 million. Picture: Matt Jelonek/Getty Images.

Qantas boss Alan Joyce has announced the carrier half-yearly results. Picture: NCA NewsWire / Dylan Coker

Cash generated from the sale of under-utilised land at Mascot, a rush of flight bookings as the Delta lockdowns ended, international border closures easing in the second quarter and strong contributions from Qantas Freight and Qantas Loyalty made significant inroads to balance sheet repair, the airline said.

Qantas Group also recorded three consecutive months of positive net free cash flow between October and December (excluding the land sale), largely as a result of the recovery in forward bookings.

The quick ramp-up of key international services, plus the addition of new routes across Jetstar and Qantas, was credited for returning some money to the balance sheet.

Qantas restarted international travel back in November when the long-hated border ban was finally dropped.

International tourists were also welcomed back on February 21, which provided another boost to airlines and tourism operators.

More to come