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Qantas cuts int’l capacity by 90%


In an update on its response to coronavirus, the Qantas Group has announced that it will be cutting total group capacity on international routes by around 90 per cent. Total group domestic capacity will be reduced by about 60 per cent.

Effective until at least the end of May 2020, the cuts come “as a result of significant falls in travel demand due to coronavirus, and new government restrictions across multiple jurisdictions in recent days”. 

 

To be phased in from the end of March, the global cut is up from a 23 per cent reduction for the fourth quarter of FY20 announced last week, while the domestic decrease is up significantly from the five per cent reduction over the same period. 

 

 

In its statement, Qantas said the new cuts represented the grounding of around 150 aircraft, including almost all of the group’s wide-body fleet. Details of route changes will be released in the coming days.

 

Previously announced cuts through to mid-September remain in place and are likely to grow.

 

Facing a significant labour surplus over the coming months, Qantas is also working to manage the impact that unprecedented low demand will have on the carrier’s current 30,000-strong work force, including through the use of paid and unpaid leave, and cuts to executive salaries.

 

In addition to this, the company has issued a wide-ranging booking waiver for customers wanting to suspend their travel plans.

 

“Customers with existing bookings on any domestic or international flight until 31 May 2020, who no longer wish to travel, can cancel their flight and retain the value of the booking as a travel credit voucher. This needs to be processed by 31 March 2020,” Qantas says on its website.

 

“Customers who make a new domestic or international booking and later decide they no longer wish to travel, can cancel their flight and retain the value of the booking as a Qantas travel credit or Jetstar travel voucher. This applies to bookings made from 10 March 2020 until 31 March 2020 for travel before 31 May 2020.”

 

Customers can access this offer on the Qantas and Jetstar websites, or through their travel agency or third party provider.

 

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Written by: Mark Harada
Published: 17 March 2020


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