Qantas set to break even, emerge from pandemic stronger says CE

Qantas CE Alan Joyce expects Australia's largest carrier to stop burning through cash and restore seat capacity to at least half its pre-virus levels by Christmas, a rare note of optimism from an airline industry devastated by the coronavirus pandemic. Australia's adept handling of the Covid-19 crisis and tough calls made by the carrier's management will allow Qantas to come out of the pandemic ahead of its rivals, Joyce said. As state borders reopen in a nation on the brink of eliminating local transmission of the virus, Qantas should be able to achieve cash breakeven, begin rebuilding its balance sheet and target opportunities following the worst crisis in aviation history, he said. “We are very optimistic. When we open up borders we’re seeing this massive surge in pent up demand,” said Joyce, who on Monday will launch Qantas’ centenary celebrations in Sydney. Joyce said passenger numbers for European, US and Middle Eastern carriers were dropping due to surging Covid-19 cases while domestic rival Virgin Australia is still recovering from administration. The re-opening of Australia, which contributes two thirds of Qantas’ profit, should enable the carrier to claim 70% of the domestic market, up 10 percentage points on pre-Covid-19 levels, he said. “We think we could be way over our 50% [seat capacity] target by the time we get to Christmas, and that by far is one of the leading amounts of capacity being added anywhere in the world at the moment,” Joyce added.<br/>