Qantas extends flight cancellations for 2 extra months, raises extra debt

FILE PHOTO: Staff will be seen close to Qantas Airways, Australia’s nationwide provider, Boeing 737-800 plane on the tarmac at Adelaide Airport, Australia, August 22, 2018. REUTERS/David Grey/File Picture

(Reuters) – Qantas Airways (QAN.AX) stated on Tuesday it might lengthen flight cancellations into June and July, and added that it secured additional debt funding that ought to assist the airline by to the tip of 2021 if the coronavirus disaster prolongs.

The Australian provider secured A$550 million ($352.99 million) in additional funding in opposition to three of its Boeing 787-9 plane and stated it might increase one other A$2.7 billion from different plane belongings if wanted.

“The group has enough liquidity to reply to a spread of restoration situations, together with one the place the present buying and selling circumstances persist till at the least December 2021”, the provider stated in a press release.

The coronavirus pandemic has introduced international journey nearly to halt and with a lot of the world nonetheless dealing with some type of motion restrictions, it stays unclear when the uncertainty will ease.

Qantas stated it anticipated a internet money burn price of about A$40 million per week by the tip of June. It added that as of Monday it had short-term liquidity of A$3.5 billion, together with a A$1 billion facility that was undrawn.

“With the potential exception of New Zealand, worldwide journey demand might take years to return to what it was,” Chief Govt Officer Alan Joyce stated in a press release.

Final month, the corporate’s smaller rival Virgin Australia Holdings (VAH.AX) entered voluntary administration after being battered by the coronavirus disaster and a excessive debt load.

Reporting by Reporting by Shruti Sonal and Nikhil Kurian Nainan in Bengaluru; Enhancing by Christian Schmollinger and Jane Wardell

Our Requirements:The Thomson Reuters Belief Rules.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.