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Joe Breitfeller

Qantas Reports H1 FY2022 Underlying EBITA Loss of $245 Million, Underlying Pre-Tax Loss of $1.3 B

Qantas Group has reported a first half fiscal year 2022 underlying EBITDA loss of $245 million, an underlying pre-tax loss of $1.3 billion and a statutory pre-tax loss of $622 million. The Group ended the period with total liquidity of $4.3 billion and debt of $5.5 billion.


Qantas Group Reports H1 FY2022 Financial Results - Courtesy Qantas Group

On Thursday (February 24, 2022), Qantas Group reported their first half fiscal year 2022 financial results for the period ending December 31, 2021. The Group reported a H1 underlying EBITA loss of $245 million, an underlying loss before taxes of $1.28 billion, and a statutory pre-tax loss of $622 million. For the period, the company reported s positive net free cash flow of $552 million, attributable to the Mascot land sale and strong Qantas Loyalty and Freight cash contributions. At December 31, 2022, the carrier’s total debt was $5.5 billion, and the Group ended the period with $4.3 billion in total liquidity.


In Thursday’s announcment, Qantas Group’s CEO, Alan Joyce, said,

“Most of Australia was in lockdown for several months of the first half, so the loss we’ve announced today isn’t surprising but it is frustrating. We saw a sharp rebound in travel demand when borders started opening in November and December, only to be hit by the Omicron wave and all the uncertainty that came with it. The uncertainty carried over into January but demand has started to recover as Australia adjusts to truly living with COVID. Our frequent flyer surveys show the intent to travel is extremely high and we’re seeing good leisure demand into the fourth quarter. We’ve also seen a sharp uptick in international ticket sales in the past few weeks.


“Predictions in a pandemic are naturally fraught, so we always forecast according to the best information we have but with the agility to adjust as needed. The fact we have all our Australian-based employees back at work means it makes sense for us to fly where it’s cash positive to do so. Despite all the uncertainty, we finished the first half with net debt back inside our target range and with strong liquidity, meaning we can start to look further ahead at strategic decisions on fleet, network and growth opportunities. We’re on track to deliver more than $900 million in annualised savings through restructuring by the end of FY22, which is ahead of schedule and means we’re able to recover faster and perform better than a pre-COVID Qantas Group could have.

“The challenge of COVID hasn’t obscured the challenge of sustainability and emissions. Since January, we’ve been adding sustainable aviation fuel into our flights from London and we’re on the cusp of doing the same out of the US. We’ll have a significant update on our plans for emissions reduction next month. We’re very conscious of the support and patience shown by customers and shareholders as we all wait for travel conditions to stabilise. In the meantime, we’ve done a lot of work to put this company in the best possible position to deliver.


“Employees across the Qantas Group have lived through enormous challenge and uncertainty over the past two years. Many have been stood down for extended periods of time and we’ve asked them to accept a wage freeze to help our company get through an unprecedented crisis that many other airlines didn’t survive. I’m pleased that we’re able to offer our people a direct stake in the national carrier through a reward and retention program. It means those who help us through the recovery can share in the success, just as they have in the past.”

During H1 FY22, Group Domestic operated at 42 percent of pre-pandemic capacity and reported an underlying EBITDA loss of $388 million. The carrier also announced during the period the selection of Airbus A320neo and A220 Family aircraft for their domestic fleet renewal. A record performance of Group Freight offset losses from Qantas International, with the whole division reporting a positive underlying EBITDA of $89 million, with depreciation and amortization resulting in an underlying EBIT loss of $238 million. Qantas International has achieved approximately $325 million in recurring structural cost benefits, which is on trach to reach $400 million by FY23. Qantas Loyalty remains strong and contributed an underlying EBIT contribution of $127 million for H1 FY22.



Source: Qantas Group

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