Qantas results 2021: Financial report reveals $1.83 billion loss during Covid-19 lockdowns

Qantas has announced a staggering loss of $1.83 billion for 2021, and now the airline’s boss has hinted when NSW and Victorian borders will open.

In what has been a horror 18 months for the global aviation industry, Qantas has revealed a staggering $2.3 billion loss before tax amid the ongoing COVID-19 global pandemic which has decimated the tourism industry.

At the underlying level, the airline’s loss was $1.8 billion — a figure exceeding expert predictions.

In the airline’s yearly trading update posted on Thursday, the nation’s largest airline said the results were a result of ongoing international border closures, as well as strict domestic travel restrictions and state lockdowns especially in NSW over the 2020 Christmas period.

Both Victorian and Sydney borders will likely remain closed until early December. Picture: NCA NewsWire / Gaye Gerard

Mr Joyce, however, gave a somewhat optimistic forecast for the upcoming festive season despite two of Australia’s biggest states currently in the midst of hard lockdowns.

“Our assumptions for domestic is that both NSW and Victoria won’t see borders opening to other states until the 1st of December,” Mr Joyce said on Thursday.

“We are assuming this given the path route to get to 70 or 80 per cent vaccination level. That’s the assumption we have built on … and not earlier that..

“Other states are open to some states between each other … but the two big states, being NSW and Victoria, won’t see borders opening again until 1st December.”

Qantas have announced a $1.83 billion loss for 2021. Picture: NCA NewsWire / David Swift

On the trade update, Mr Joyce said the past year had been “diabolical” for the tourism and aviation industry.

“This loss shows the impact that a full year of closed international borders and more than 330 days of domestic travel restrictions had on the national carrier. The trading conditions have frankly been diabolical,” Qantas Group CEO Alan Joyce said on Thursday.

“It comes on top of the significant loss we reported last year and the travel restrictions we’ve seen in the past few months. By the end of this calendar year, it’s likely Covid will cost us more than $20 billion in revenue.

Qantas CEO Alan Joyce holds a market update into the airlines current positioning and future plans. Picture: NCA NewsWire / Jeremy Piper

Since the pandemic began in 2020, Qantas has announced 46 new domestic routes, many to regional destinations, in response to a boom in leisure travel driven largely by the closure of international borders.

But despite the substantial loss, the airline said they have started FY2022 in a fundamentally better position.

“We’re in a far better position to manage it than this time last year,” Mr Joyce said.

“We’re able to move quickly when borders open and close. We’re a leaner and more efficient organisation. And our requirement for all employees to be vaccinated will create a safer environment for our people and customers.

“When Australia reaches those critical vaccination targets later this year and the likelihood of future lockdowns and border closures reduces, we expect to see a surge in domestic travel demand and a gradual return of international travel.”

Qantas have announced their 2021 yearly results. Picture: Mark Stewart

Mr Joyce provided some uplifting news for Aussies keen to dust off their passports, with the airline still surging towards a 2021 restart.

The Qantas Group outlined that on current projections, Australia is expected to reach national cabinet’s ‘Phase C’ vaccination threshold of 80 per cent in December 2021, which would trigger the gradual reopening of international borders.

Mr Joyce said key markets like the UK, North America and parts of Asia have high and increasing levels of vaccination, which make them highly likely to be classed as low risk countries for vaccinated travellers to visit and return from under reduced quarantine requirements.

Flights to destinations that still have low vaccine rates and high levels of COVID infection, such as Bali, Jakarta, Manila, Bangkok, Phuket, Ho Chi Minh City and Johannesburg will likely remain closed until later in 2022.

Qantas said they still have 2021 in their sights to restart overseas travel. Picture: David Clark

The yearly results come just days after the Australian airline announced it will be making Covid-19 vaccinations mandatory for all employees if they wish to keep their job with the airline.

Last week, Mr Joyce said Qantas’ mandate will come into effect from mid-November.

The airline said in a statement that frontline staff — such as cabin crew, pilots and airport workers — will be required to be fully vaccinated by November 15, while all remaining employees will need the jab by the end of March 2022.