Qantas Group has taken decisive action to reduce costs because of slumping passenger demand caused by the coronavirus. In a major strategic shift, Qantas today announced it is withdrawing eight of its largest aircraft, the Airbus A380, from service and deploying smaller aircraft on less frequent schedules to maintain connectivity through the crisis.
“The biggest reductions remain focussed on Asia (now down 31 per cent compared with the same period last year),” the airline said. “Capacity reductions to the United States (down 19 per cent), the UK (down 17 per cent) and Trans-Tasman (down 10 per cent) will also be made in line with forward booking trends.”
It will cut domestic capacity by 5 per cent while senior staff have taken pay cuts of 30 per cent for the rest of this financial year. CEO Alan Joyce will take no wage for this period. See release.