Qantas results come out today, and it’s safe to say they’re not going to be pretty.
A big loss has already been foreshadowed, and media reports are predicting up to 5000 people could lose their jobs.
The government is also expected to announce a debt guarantee, and propose changes to the Qantas Sale Act to help the airline.
That’s great. But it doesn’t fix a lot of the the airline’s longer-term problems, as pointed out by this (unnamed) analyst who spoke to The Australian:
“While the guarantee might be important to the company, it really just buys a bit of time and I want to know what they’re going to do operationally,” one analyst said, who noted that just shrinking the airline was not enough.
“I want to know how they’re going to change the way they do business and change the operations that are undertaken in Qantas main line that make perfectly good aircraft uneconomic in their hands while quite profitable in the hands of other airlines.”
We’ll have all the numbers and analysis when they’re out.
You can read more at The Australian here.