QANTAS ANNUAL REPORT 2020 QANTAS ANNUAL REPORT 2020 CEO’s Report “This company was founded 100 years ago in the wake of a world war and a devastating pandemic. We know that things will improve, and that the Qantas Group will thrive when it does.” This year was one of sharp contrasts. After years of record profits, our balance sheet is strong. That enabled For most of FY20, the Qantas Group us to raise over $2 billion in debt in was focused on growth. We opened Support from the Australian Seeing so many people leave this This company was founded 100 years addition to a $1.4 billion equity raising, our pilot academy in Queensland, Government — for the aviation organisation, and many more stood ago in the wake of a world war and giving us the extra liquidity to make it announced new routes and were industry and for the broader economy down from the jobs they love, has a devastating pandemic. We know through to the other side of the crisis. actively hiring new people. We — was a key feature of FY20. In been the hardest part of this crisis. that things will improve, and that the had completed historic non-stop The Group’s strengths are also clear in particular, JobKeeper provided a We continue to offer them as much Qantas Group will thrive when it does. research flights from New York and its FY20 performance. crucial safety net for the thousands support as we can. One positive is the London direct to Sydney, and we of our people on stand down, and feedback from other companies that Despite a 21 per cent drop in revenue, were preparing to order the aircraft continues to do so. have offered secondary employment, the Group still posted a $124 million who describe the incredible required to fly them commercially for The impact of this crisis means the Underlying Profit Before Tax. That was professionalism and resilience of Project Sunrise. Qantas Group will be smaller for Alan Joyce AC largely due to our first half result — Qantas and Jetstar people. That spirit some time to come. The markets we Then came the worst trading which mostly unwound in the second runs throughout the Group and it’s operate in will be different. And we’ll conditions in a century. half — and the rapid action to control what will help us recover. costs as travel demand collapsed. need to rebuild our balance sheet. It was a sudden reversal of fortune For not the first time in our history, We have received incredible support that has been very hard for our There were some bright spots in our we need to reinvent how we do things from our partners, suppliers and people, customers and shareholders. portfolio. Qantas Loyalty achieved — which will result in more difficult customers. And also from the 91 per cent of its profit from last year But the depth of the contrast points decisions to ultimately protect the communities we look forward to and set a record level of member to the fact we entered the COVID-19 company’s future. getting back to serving in the future. satisfaction in the last, and most crisis in a very strong position. We thank them sincerely. challenging, quarter. Qantas Freight Perhaps the strongest of any airline has benefited from the increasing in the world. shift to e-commerce. And our charter flying for resources companies performed strongly. .