Qantas has secured another $550 million in debt and will extend its widespread flight cancellations as it prepares to lose $40 million a week until travel demand starts to recover from the coronavirus shutdown.
The fresh debt funding, secured against three Boeing 787s it owns, comes on top of $1 billion raised in March and gives Qantas sufficient liquidity to survive through to December 2021 even under current trading conditions, the airline said on Tuesday.
Qantas is currently flying the equivalent of about 5 per cent of its pre-pandemic domestic capacity and 1 per cent of its international capacity. The company said on Monday it was extending domestic and trans-Tasman flight cancellations through to the end of June and other international fights through to the end of July, but could quickly return to capacity if required.
The company said around 25,000 of its 30,000 staff would remain stood-down until at least until the end of June.