From the statement it says from the end of March 2020 onwards international capacity will be cut by around 90 per cent until at least the end of May 2020. This is up from a 23 per cent reduction for the fourth quarter of FY20 announced last week and largely reflects the demand impact of severe quarantine requirements on people’s ability to travel overseas.
Total Group Domestic capacity will be cut by around 60 per cent until at least the end of May 2020. This is a major increase from the 5 per cent reduction for the fourth quarter of FY20 and reflects a rapid decline in forward travel demand due to government containment measures, corporate travel bans and a general pullback from everyday activities across the community.
This represents the grounding of around 150 aircraft, including almost all of the Group’s wide-body fleet.Previously announced cuts in place from end-May through to mid-September remain in place and are likely to be increased, depending on demand.
There will be “significant labour surplus across its operations” and the impact will extent to theirentire workforce of 30,000 people.
“The Qantas Group is working to manage this impact as much as possible, including through the use of paid and unpaid leave,” the company statement says. “This will be in addition to measures already announced, including three months of no pay for the CEO and Chairman, significant pay cuts for Group Executive Management and Board members, and cancelling of annual bonuses and an off-market buy back.”