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09.03.2020 21:45:02

Qantas Airways imposes severe cuts due to coronavirus

Qantas Airways Ltd. [AU: QAN] has undertaken several drastic cost-cutting measures because of coronavirus. The Australia-based airline, noting a sudden and significant drop in demand that will push international capacity down 23% from a year ago, is reducing aircraft size and flight frequency. This includes grounding eight A380 aircraft until mid-September, and suspending the start of the Brisbane-to-Chicago route until September. The company has also asked all staff to take paid or unpaid leave, scrapped fiscal 2020 management bonuses, and said its chief executive is foregoing salary for the rest of fiscal 2020. Qantas shares are down 42% this year. The broader S&P 500 index had declined 15% this year.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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