Qantas and Jetstar slash 90% of global flights due to coronavirus

17 Mars, 2020, 15:40 | Auteur: Auguste Feret
  • Virgin Australia Just Suspended All International Flights Due To “Unprecedented Time”

On Tuesday Qantas announced enormous cut backs to its worldwide and domestic services in response to coronavirus.

Qantas Airways said on Tuesday (March 17) it would cut its global capacity by around 90 per cent until at least the end of May as travel demand to Australia plunges because of new restrictions on arrivals related to the coronavirus.

Like other airlines, Qantas is battling to survive this crisis in as strong a position as possible.

They say a route-by-route detail of these changes across Qantas and Jetstar is now being worked through and will be announced in coming days.

Airlines around the world are reeling as containment measures tighten in an attempt to halt the spread of the virus.

Rival Air New Zealand Ltd said on Monday it would cut long-haul capacity by 85%, while Virgin Australia Holdings Ltd had its credit rating downgraded.

It will take off from Wellington and Christchurch for Australia just twice a week; to Sydney.

You can read Qantas' press release from Tuesday over at the Qantas website.

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The company said the halt will remain until Thursday or until it makes a sooner announcement.

This includes using some domestic passenger aircraft for freight-only flights to replace lost capacity from regular scheduled services.

Qantas confirmed previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.

Facing a growing list of travel bans around the globe and a "precipitous decline in demand", Qantas said the cutbacks would continue until at least the end of May.

The Group said it is now working through details of the affected routes across Qantas and Jetstar, which will be announced in the coming days. This will be in addition to measures already announced, including three months of no pay for chief executive Alan Joyce and significant pay cuts for group executive management and board members, and cancelling of annual bonuses and an off-market buy back.

This news comes just one day after Qantas announced it would provide travel credits to customers who cancel flights between now and May 31. The Group added that this needs to be processed by March 31 this year.

Qantas shares have shed almost two thirds of their value since hitting a record high $7.46 in December.

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