Reopening will lift travel out of ‘diabolical’ losses

After a trading year that has “frankly been diabolical”, as Qantas chief executive Alan Joyce said on Thursday, the airline’s $2.35bn loss for the 2021 financial year was no surprise. It followed a $2.7bn loss the previous year. The airline’s result underlined the importance of governments persevering with the phased plan to reopen the nation when vaccine levels permit, especially unlocking state and international borders. A total of 330 days were affected by domestic travel restrictions during the 2021 financial year. The disruptions and the grounding of international flights have led to 9400 Qantas and Jetstar staff – a third of the workforce – losing their jobs. More than 8000 employees have been stood down.

Thursday’s Flight Centre results underline the tourism sector’s potential for recovery when borders reopen. While the travel agency was hampered by lockdowns in Australia, its $507m underlying loss was in line with market expectations. The company’s performance was helped by corporate travel, a recovery in domestic travel in China, France and Germany, and pre-tax profit generated in the Americas, Europe, the Middle East and Africa. Flight Centre chief executive Graham Turner expects a strong bounce-back in Australia when restrictions are lifted, in line with experience overseas.

As Tourism Minister Dan Tehan told Sky News on Thursday, it is “incredibly important” for the tourism industry, and the 660,000 jobs that depend on it, that all governments stick to the reopening plan endorsed by national cabinet. That plan depends on maintaining the momentum of vaccinations. After a record 335,420 vaccinations in 24 hours to Thursday, the total rollout exceeds 18 million. More than 55 per cent of adults have had one injection and almost a third are fully vaccinated.

NSW Premier Gladys Berejiklian says a limited number of restrictions will be lifted on September 13 for those who are fully vaccinated, providing a sign of hope for businesses and individuals anxious to see the return of cherished freedoms. Under the rule changes, fully vaccinated people living outside local government areas of concern will be able to gather outside in groups of up to five, including children, within 5km of home. Fully vaccinated residents within LGAs of concern also will be able to gather outdoors for recreation or picnics, but it will be limited to one hour within the existing curfew. Further state rules will be eased when the targets of 70 per cent and then 80 per cent of vaccination coverage are reached. Officials had expected to reach 70 per cent by the end of October, but with the pace of immunisations exceeding expectations the target is likely to be achieved earlier. NSW reached a first-dose vaccination coverage of 62.8 per cent on Wednesday, with 33.8 per cent cent of adults fully vaccinated.

As well as protecting their lives and their health, it is the prospect of travel and reunions with loved ones, including those living overseas, that is motivating many to line up for vaccinations. As soon as the vaccination rate reaches 80 per cent, Qantas is planning to resume flights in mid-December to countries with high vaccinations such as Britain, the US, Canada, Japan, Singapore, Fiji and possibly New Zealand. That goal raises vital questions about quarantine, which will be discussed by national cabinet on Friday, as Geoff Chambers and Simon Benson report. Allowing returning Australians to isolate at home in the lead-up to Christmas would revitalise travel as the nation moves out of the suppression phase. Doing so also would take pressure off the overstretched hotel quarantine system. The return to mobility will be served best if all states meet their vaccine targets and avoid the complications of border closures.