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Finnair expects to launch a E500m rights offering, an amount that exceeds its current equity, in Q2, it said Tuesday. Finnair reported deepening Q1 losses last week and said it planned to raise around E500m through a rights offering, saying it expected to lose around E2m each day this quarter as most of its planes are grounded. It had not unveiled a timeline for the rights offering last week. “The company plans to use the funds raised in the rights offering to strengthen the company’s balance sheet position and liquidity in the exceptional situation caused by the Covid-19 pandemic,” Finnair said Tuesday.<br/>

Qantas has shelved plans to launch the longest direct flights in the world and will review its fleet due to the collapse of international travel as a result of the coronavirus outbreak. Alan Joyce, Qantas CE, said Tuesday the airline was on track to reduce its cash burn rate to A$40m a week by the end of June, which would enable it to last out the pandemic that has grounded most of its flights. But a full recovery in international travel could take years, he said, which meant the carrier needed to overhaul its operations. The decision to suspend indefinitely its “Project Sunrise” plan to fly direct from Sydney and Melbourne to European cities and New York is a blow for Qantas, which has invested significant resources in ultra-long-haul travel. It is also disappointing for Airbus, which won the contract to supply modified aircraft for the routes. “We will be putting Project Sunrise on hold,” said Joyce. “The time is not right now given the impact that Covid-19 has had on world travel. We certainly won't be ordering aircraft for that this year.” Qantas had intended to order 12 Airbus A350-1000 aircraft before the end of March to operate the world’s longest commercial direct flights, including the so-called kangaroo route between Australia and the UK. <br/>

Qantas boss Alan Joyce has said the airline’s budget arm Jetstar could cut airfares on the Sydney to Melbourne route as low as $19 to stimulate passenger demand once COVID-19 travel restrictions ease. Qantas' domestic flying has been reduced to 5% of its pre-pandemic levels, and Joyce said while there was "light at the end of the tunnel" in the form of domestic travel restrictions easing and a possible trans-Tasman "bubble", the recovery would be gradual. There would be some pent-up demand from people who want to visit family when restrictions lift, Joyce said, and Qantas would also look to stimulate demand with cheap airfares. “On Melbourne-Sydney you could see Jetstar have $39 airfares, you could see $19 airfares and we'll still cover our cash costs on those flights," he said following an investor update. The signal of steeply discounted fares comes as Qantas' domestic competitor Virgin Australia is in voluntary administration looking for new owners. Mr Joyce said it wasn't yet clear what kind of airline the new Virgin will be, although some are suggesting it will return to its budget roots. He said whatever the outcome, it will present "challenges and opportunities" Qantas will have to respond to.<br/>

Qatar Airways has warned its employees of "substantial" redundancies amid a collapse in demand for air travel caused by the coronavirus, according to an internal memo seen by AFP Tuesday. The Gulf airline, which flew to more than 170 destinations with 234 aircraft as of March, has been hit by airport closures and travel bans imposed to contain the spread of COVID-19. "The truth is, we simply cannot sustain the current staff numbers and will need to make a substantial number of jobs redundant - inclusive of cabin crew," Qatar Airways CE Abkar al-Baker wrote in a memo to cabin crew dated Monday. The note did not specify how many of its more than 30,000 staff were at risk of redundancy, although the airline has had to slash its passenger services to just 35 destinations. "The unparallelled impact on our industry has caused significant challenges for all airlines and we must act decisively to protect the future of our business," the airline said. "As a result, Qatar Airways can confirm that the airline will make a number of roles redundant due to the impact of COVID-19. Any job loss is regrettable and we will be working closely with all affected employees to offer our full support during this difficult time."<br/>

Norwegian Air will sell new shares at a 79% discount to the latest traded price on the Oslo Bourse, the carrier said on Tuesday as it seeks to boost its equity in order to qualify for Norway's government aid package. Shareholders on Monday approved a plan to convert nearly $1b of debt into equity and raise up to 400m crowns (GBP31.4m) from the sale of new shares to help the airline survive the coronavirus pandemic. Norwegian aims to sell new shares at 1.0 crown each, it said, far less than Tuesday's closing price of 4.80 crowns as it seeks to attract investors even while the debt conversion leads to a massive dilution of ownership stakes. The company plans to raise 300-400m crowns, and has so far secured commitments from investors planning to buy shares for more than 100m crowns, it added. The debt conversion and share sale will allow Norwegian Air to tap government guarantees of up to 2.7b crowns, which hinge on a reduction in leverage, on top of 300m crowns it has already received. If the process fails however, Norwegian Air is at risk of running out of money by mid-May even though it only pays invoices vital to maintaining minimum operations. <br/>

Wizz Air has said it will restart holiday flights from Luton airport to Portugal in mid-June and to Greece in July in the hope that Covid-19 travel restrictions will be lifted. Announcing five new routes, the low-cost airline said from 16 June flights would depart from the London airport to Faro in Portugal, with prices starting at GBP25.99, and to Corfu, Heraklion, Rhodes and Zakynthos in Greece from the start of July. Wizz Air has introduced new rules, including compulsory face masks for passengers and staff as well as gloves for crew, to make people feel more confident about flying. It will also give sanitising wipes to travellers and no longer provide magazines. The airline says it encourages travellers to observe physical distancing at the airport but it will fill middle seats on aircrafts if there is enough demand. Owain Jones, the managing director of Wizz Air UK, said: “Although travel is currently restricted by government regulations, we are planning for the easing of restrictions as the situation improves and our customers are able to start travelling again.”<br/>