Qantas Airways Ltd (ASX:QAN) on Friday forecast lower net debt by the end of fiscal 2022 due to strong travel demand in domestic and institutional travel. In its latest ASX update, Australia’s national carrier forecast net debt to decline to nearly A$4 billion after surging to over A$6.4 billion at the height of the COVID-19 pandemic. . This is an improvement of nearly A$1.5 billion over the past six months, Qantas said.
Qantas has updated its net debt target range to be between A$4.2 billion and A$5.2 billion. The airline forecasts a large underlying earnings before interest and tax (EBIT) loss for FY22, which includes the worst of the Delta and Omicron impacts as well as restart costs.
However, the business confirmed it was on track for the second half of FY22, underlying earnings before interest, tax, depreciation and amortization (EBITDA) of between A$450 million and A$550 million. .
Qantas Airways Limited is Australia’s flag carrier and the largest airline in terms of fleet size, international flights and international destinations. It is the third oldest airline in the world still in operation.
Qantas’ preparations for the July peak
Qantas also thanked customers for their “patience and understanding as the airline works through what has been a difficult restart for the industry globally”. She announced a 15% increase in ground staff compared to the Easter holidays.
“Since April, Qantas and Jetstar have recruited more than 1,000 operational team members, and hundreds of additional contact center staff have reduced average call wait times. Qantas will have 20% more team members on standby to minimize any impact of sick leave,” Qantas added.
Qantas has also announced plans to launch direct flights from Perth to Jakarta and Perth to Johannesburg in November 2022. This brings to eight the total number of new destinations the flag carrier has added since Australia’s borders reopened at the end of Last year.
Qantas share price overview
Following the update, Qantas shares were trading at AU$4.58, up 0.060 at 10:06 a.m. (AEST). Over the past year, the stock has fallen more than 1%. The stock price is down more than 11% since the start of the year. Over the past month, the stock has fallen more than 14%.
Meanwhile, Qantas Airways recently announced its plan to achieve net zero carbon emissions by 2050. The plan also included an interim target of reducing carbon emissions by 25% by 2030.
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