Qantas Scraps All International Flights Until At Least End of May; Shares Down 16%

By Alex Ho

Investing.com - Qantas Airways Ltd (ASX:QAN) said it is scrapping all international flights from late March until at least the end of May as travel demands continued to cease.

Two-thirds of Qantas’ employees will be temporarily idled, the airline said on Thursday.

“Demand has evaporated,” Qantas Chief Executive Officer Alan Joyce said in a note to employees. “We have no work for most of our people. We have to make difficult decisions to guarantee the future of the national carrier.”

It was the airline’s fifth round of reductions in less than a month. Today’s announcement came just two days after Qantas said it is cutting its international capacity by 90%.

Sydney-based consultancy CAPA Centre for Aviation warned in a statement this week that the virus pandemic could potentially bankrupt most airlines globally by the end of May if governments and authorities do not take coordinated steps to avoid such a situation.

“Coordinated government and industry action is needed — now — if catastrophe is to be avoided,” CAPA said. Otherwise, “emerging from the crisis will be like entering a brutal battlefield, littered with casualties,” it said.

Qantas’ shares plunged 15.8% to A$2.13 by 1:15 AM ET (05:15 GMT).

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