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Australia’s and New Zealand’s national carriers claim that the worst coronavirus issue is now behind them, even though they once again reported annual losses.
“With the existential crisis posed by the pandemic being over,” according to Qantas, demand is rising.
Since March, according to Air New Zealand, “bookings and revenues have witnessed a very significant turnaround.”
Some of the strongest travel bans against pandemics had been put in place by both nations.
In a statement released on Thursday, Qantas explained that its underlying loss before tax had increased from the prior year to A$1.86bn ($1.3bn; £1.1bn) in the year to the end of June.
A better-than-expected A$3.94 billion in net debt was reduced, according to the company.
According to Qantas CEO Alan Joyce, the speed and scope of that recovery from COVID-induced lockdown have been extraordinary.
In February, Australia once more let foreign travelers enter. After almost two years, that signaled the end.
As borders reopened, Qantas struggled to restore operations, much like the majority of the global aviation industry.
In order to address a critical labor shortage, it asked senior executives to work as baggage handlers at the airports in Sydney and Melbourne.
Qantas continues to experience headwinds
Flying is the only practical way to move around Australia if you’re in a hurry due to the large distances and the lack of a good intercity train network (even between Sydney and Melbourne, one of the busiest flight routes in the world).
It hasn’t always been a particularly nice experience, though, as passenger demand increases. Travelers rushed to board a recent Qantas flight leaving Sydney with a zeal never witnessed. But the reason became apparent.
Flyers are probably reasonably reluctant to risk putting bags on hold, given the prevalence of stories of delayed and missing luggage.
They’re vying for space in overhead lockers instead. So it was a true test of my Tetris skills to locate a spot, even for a laptop bag.
We were lucky, though, as an hour’s delay on the tarmac did not improve anyone’s disposition. Airlines suffer with crew calling in sick, and flu and Covid are still a problem, so departure boards are covered in last-minute cancellations.
Baggage and staffing problems have also plagued other carriers. Qantas, however, has the most notoriety as the flag carrier. Furthermore, it is a prime target since the epidemic forced hundreds of luggage handlers out of work.
The company’s under-fire chief executive Alan Joyce was on the offensive earlier this week, offering status extensions, discount coupons, and access to lounges to the frequent flyers who support the operation in addition to his apologies.
According to the most recent findings, the issue isn’t that too many enticing people are flying around again. Instead, the rise in reservations indicates that more individuals wish to go.
While repairing its balance sheet at that time, the need to repair Qantas’ reputation is equally vital.
Thursday also saw the announcement by Air New Zealand that its pre-tax losses for the year ended in June had increased to NZ$725 million ($449.8 million; £380.7 million).
In contrast, operating revenue increased by 9% to NZ$2.7 billion during the same period.
According to CEO Greg Foran, the “revive” phase of Air New Zealand’s Covid-19 turnaround is underway.
For the first time since March 2020, New Zealand’s borders are now completely open to visitors.
