Alan Joyce, the embattled CEO of Qantas, has disclosed a $1.9 billion deficit and acknowledged that the airline’s performance has been subpar this year due to employee shortages.
The Covid shutdowns have cost the flying kangaroo airline a total of $7 billion in losses since the epidemic began in 2020. The CEO called the numbers “staggering.”
Since the demand for flights has returned to pre-pandemic levels, the first half of 2022 has been challenging for Qantas. However, an Omicron epidemic has resulted in significant delays at airports.
Mr. Joyce made the startling revelation that Qantas’ subpar service was due to personnel shortages brought on by the seven-day Covid isolation periods.
All of these led to issues that were well publicized, including lengthy lines, delayed flights, and lost luggage, he said on Thursday.
For our workers, it was quite difficult, and for our passengers, it was extremely aggravating.
“It was just not good enough,” and for that we are sorry.
State border restrictions have hurt Qantas’ profitability, resulting in a $1.859 billion underlying pre-tax deficit for the whole year.
This was a far greater loss than the $1.774 billion one experienced up to June 2021.
These numbers are startling, and it has undoubtedly been difficult to cross over, Mr. Joyce added.
In April, Mr. Joyce said that airport scanners were to responsible for rejecting travelers who were not’match fit,’ but on Thursday, he informed investors that a staffing shortfall was the issue.
He said that a severe labor shortage occurred at the same time as the recovery in travel demand.
Of course, given how many workers departed the sector over two tumultuous years, the shortfall has been more severe in aviation.
With a new strategy of employing more crew on fewer flights to “give us more of a cushion,” Qantas has employed 1,500 additional employees since April.
We can better cover sick leave, which is now averaging more than 50% over average, said Mr. Joyce.
The Omicron epidemic derailed Qantas’ preparations for the resume of widespread air travel, according to the CEO, who was paid $5.288 million last year.
We were prepared for the restart since we knew the recovery would come, the man stated.
After Covid had been suppressed for 18 months, “what we weren’t ready for was such high levels of community transmission and the sick leave that followed.”
Mr. Joyce pointed out that Qantas had lost more money as a result of Covid in less than three years than it had earned in the five years before.
The airline’s bottom line net loss for the fiscal year that ended on June 30 decreased from $1.692 billion to $860 million.
However, income increased 53.5% to $9.108 billion for the year from $5.934 billion as a result of an increase in international air travel once Covid limitations were relaxed.
After the pandemic greatly affected air travel, according to Qantas, flying levels for the year averaged 33% of pre-pandemic levels, but they ended the financial year at 68% of pre-pandemic levels.
Although the carrier announced an on-market share buy-back of up to $400 million, it would not be paying a dividend for the year.