Three-Year Recovery Plan
Recovery Plan ahead of schedule, Balance Sheet repair commenced
Preserving liquidity - 2H20
Acted swiftly to safely hibernate the
business, cut costs and preserve
liquidity
Boosted liquidity; maintained no
financial covenants on debt and
investment grade credit rating
[Baa2]
Disciplined capital allocation¹;
deferred aircraft deliveries
Renegotiated supplier contracts,
grounded the majority of the fleet,
stood down ~25,000 employees
Improved travel credit conditions
for customers; introduced 'Fly Well'
Cut cash costs by ~75% in response
to 82% fall in Group Total Revenue in
4Q20
Changed Loyalty program to drive
member engagement, including tier
extension
Restructuring and
Domestic restart - FY21
Delivered $650m of cost benefits in FY21, ahead
of target
Maintained cash focus and agile network
management in addressing highly dynamic
environment
Generated positive Statutory Net Free Cash Flow
in 2H21, allowing Balance Sheet repair to
commence, accelerating in 4Q21
Materially completed cash outflows for deferred
payables, refunds and redundancies
Qantas Loyalty returned to growth² and achieved
record customer NPS
Enhanced customer confidence through 'Fly Well'
and 'Fly Flexible' programs
Conducted international repatriation flights and
maintained vital freight routes
Maintained strong liquidity and retained Baa2
investment grade credit rating
Domestic ramp up and
International restart - FY22
Recovery Plan activities to deliver cost savings of
$850m with >90% initiatives completed or underway
Highly leveraged to recovery in travel demand as
vaccine roll out progresses with pace
Well-positioned to meet expected sharp increase
in domestic travel as lockdowns end
Ability to respond with a range of fleet types and
agile network
Planning for disciplined restart of regular long-haul
international passenger services
Maintaining fleet readiness through IFAM³ and
repatriation flights
Giving customers confidence to fly, as 'trusted
travel advisor' through 'Fly Well' and investment in
digital health passport
Continued focus on Balance Sheet repair in FY22
Continued Qantas Loyalty growth and Freight strength
Expect return of entire workforce by end of FY22
100
1. Cancelled up to $150m off-market share buy back and interim dividend totalling $201m. Reduced capital expenditure by ~$400m. 2. 2H21 Underlying earnings before interest and tax (EBIT) compared to 2H20 and 1H21. 3. International Freight Assistance Mechanism. See supplementary
slide 15 for more information.
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