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Qantas announces job cuts, shares sale and aircraft grounding

Thursday, June 25, 2020

Qantas says it will cut at least 6,000 jobs across all parts of the business and continue to stand down 15000 employees as part of its plan to recover from the impact of the COVID pandemic.

Australia's flag carrier also said it will ground at least 100 aircraft for up to 12 months and reduce $15 billion in costs over the next three years.

The company also announced it is raising $1.9 billion through a shares sale.

This will comprise of a $1.4 billion institutional placement and another $500 million to be raised throgh a share purchase plan for retail investors.

Qantas shares have been placed in a trading halt ahead of the share sale.

Qantas is currently operating around domestic capacity to 15 per cent of pre-coronavirus levels following an easing in coronavirus-related social and travel restrictions that had resulted in the airline standing down two-thirds of its 30,000-member workforce in March.

AAP