Qantas expects to burn $40M per week by June 2020
Qantas group, the parent company of Qantas Airways, expects to reach a cash burn rate of $40 million per week by the end of June 2020.
In the light of the coronavirus crisis, the airlines of Qantas group operate around 5% of their pre-crisis domestic passenger network and around 1% of their international network, the company revealed in a statement on May 5, 2020.
The company’s CEO Alan Joyce does not expect a return to pre-crisis levels any time soon. “We’re expecting demand recovery to be gradual and it will be some time before total demand reaches pre-crisis levels,” he is cited in the statement.
Already implementing various cost-cutting measures, including sending employees to stand-downs, halting “virtually all” capital and operating expenditure, and re-negotiating deals with suppliers, the company now hopes to reach a net cash burn rate of $40 million per week by the end of June 2020.
The group also announced having secured $550 million in funding against three of its wholly-owned Boeing 787-9 aircraft, on top of $1.05 billion raised against seven Boeing 787 Dreamliners in March 2020. The company still owns aircraft worth $2.7 billion as unencumbered assets, which can help it survive until the end of 2021.
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