Qantas said that Qantas will lay off 6,000 workers to keep them alive in the coronavirus pandemic.
Before the Covid-19 crisis, layoffs were equivalent to about one-fifth of the airline’s employees. In March, it dismissed two thirds of its employees.
Australian National Airlines said the collapse of global air travel has severely damaged revenue.
Last week, the Australian government stated that its border is likely to be closed next year.
It prompted Qantas to cancel all international flights to New Zealand until late October.
On Thursday, the company’s chief executive, Alan Joyce, said the airline expects revenue to decrease in the next three years, forcing the company to become a smaller company in order to survive.
He said in a statement: “The actions we must take will have a huge impact on our thousands of people.”
“However, if we want to keep as much work as possible for a long time, then the collapse of billions of dollars in income will leave us no choice.”
He added that Qantas and its budget subsidiary Jetstar will continue to extend the vacation time for about 15,000 workers “because we are waiting for the recovery we know is coming”.
The airline also plans to raise 1.9 billion Australian dollars (1.05 billion pounds; 1.3 billion U.S. dollars) in equity-the first move in 10 years-to introduce new funds and help “accelerate” its recovery.
The company said other short-term savings will be found during the grounding of its A380 fleet and the delay in purchasing new aircraft.
Joyce said he estimates that domestic flight demand will be fully restored by 2022, but international demand at that time will be half of the current.
Virgin Australia, another large Australian airline, also suffered financial losses during the pandemic and fell into voluntary management in April. It said that since then it has received several acquisition offers.
- Virgin Australia downfall
Earlier this month, the International Air Transport Association (IATA) warned that the aviation industry could suffer more than $84 billion in losses this year.