‘Single biggest shock’ for Qantas: Alan Joyce

Qantas will operate as few as five flights out of the country each day, and just over 200 domestic flights daily.

Qantas is cutting 90 per cent of its international flights Picture: Christian Gilles

Qantas will operate as few as five flights out of the country each day, and just over 200 domestic flights daily, after drastic cuts to capacity that will put thousands of jobs in doubt.

A statement to the ASX on Tuesday outlined cuts of 90 per cent to international capacity and 60 per cent for domestic flights until the end of May, in response to tough government restrictions on travellers entering Australia.

Prior to the coronavirus outbreak that triggered a series of ­capacity cuts, Qantas and Jetstar operated in excess of 50 international flights a day, and more than 600 domestic services.

In an email to employees, chief executive Alan Joyce said it was now fair to say the coronavirus was the “single biggest shock that ­global aviation had ever ­experienced”.

“Both Qantas and Jetstar are faced with the need to radically increase the cuts already made to flying schedules,” Mr Joyce wrote.

“This will impact all 30,000 of us. There will be significant hardship as we make our way through this, and out the other side — which could take a while.”

Details of affected routes will be announced in coming days, but virtually all wide-body aircraft were expected to be grounded, ­including Boeing 747s, Airbus A380s, A330s and possibly even some 787-9s.

The extreme measures failed to stem the fall in Qantas’s share price, which closed down 5.2 per cent for the day at $2.86.

Virgin Australia continued to assess its arrangements to meet the “changed market conditions” but an update was expected as early as Wednesday.

The airline previously announced more modest cuts than Qantas due to its limited exposure to international markets, with a ­reduction of 7.7 per cent across Virgin and Tigerair by July.

Regional Express Airlines also flagged capacity cuts from Thursday after seeking a trading halt on the ASX.

In a letter to Deputy Prime Minister Michael McCormack, chief operating officer Neville Howell said a drastic schedule ­reduction was in the pipeline that included dropping some routes ­altogether.

He warned that without significant assistance Rex would not survive the next six months and called for “vigorous, swift and unprecedented actions”.

As well as government relief from taxes and charges, Mr Howell demanded airports suspend fees, a call other airlines have ­echoed.

But their pleas appeared unlikely to be answered, with the Australian Airports Association saying members were being affected just as badly by vanishing ­demand.

The association’s acting CEO, Simon Bourke, said aeronautical revenues were tipped to fall by $500m as a result of COVID-19.

“Revenue from aeronautical charges and other airport services are all dependent on passenger numbers and are being heavily impacted by lower demand,” Mr Bourke said.

“International arrivals are at their lowest levels since 2013 and airports feel the loss of every passenger several times over.”

To that end, Mr Bourke said further cuts, when airline payments were already falling, would “severely limit airports’ ability to support the recovery of our airline, retail and business partners”.

Sydney Airport shares hit a five-year on Tuesday before closing down 1 per cent at $4.73.