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The Qantas Group secured a $1.05 billion loan on Wednesday morning, which caused shares to soar by 25 per cent.
This debt has been secured against part of its fleet of unencumbered aircraft, which were bought with cash in recent years. The loan has a tenure of up to 10 years at an interest rate of 2.75 per cent.
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This funding increases Qantas’ available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.
Qantas Group chief executive Alan Joyce said, “Over the past few years we’ve significantly strengthened our balance sheet and we’re now able to draw on that strength under what are exceptional circumstances.
“Everything we’re doing at the moment is focused on guaranteeing the long-term future of the national carrier, including making sure our people have jobs to return to when we have work for them again.”
Qantas shares peaked at $3.39 at one point on Wednesday and were the second top-gaining business on the ASX.
Last week, after the announcement it was to stand down two-thirds of its staff, Qantas was trading at just $2.03.
john
says:there are certainly some silly bankers out there. I would not give Qantas 1 cent. Think there’s more chance of Qantas folding than Virgin right now.
The aircraft they own are worth far less right now than there were at start of year.
As no demand whatsoever for used or new aircraft right now, it could be argued that they are almost worthless.
Paul
says:John, from an investment point of view it’s good for the bankers. So far from what I have read 2 of the top 5 share holders are helping them with this loan. So as silly as it might be, from a investment stand point it’s great.
Shuggie
says:John,….as Billy Connoly would say, “as useful as a fart in a spacesuit” lol
Rocket
says:Well then you obviously know nothing about either company or can’t read… aircraft they paid cash for meaning new aircraft. They are definitely worth something as this will not last forever. The only stupid bank would be one that loans money to the other mob, who couldn’t run a tart shop at a profit
James
says:Rubbish
robynne morton
says:Chinese banker?????
Peter
says:John, What is your viewpoint then on investors who pushed QF shares up 25% today.
Shuggie
says:Could Qantas now pay the awarded 2018 bonuses still owed to ASU members? I think it would be a really good time, and most welcomed.
Jabiru Joe
says:Given that a 4 billion dollar war chest is available to see them through lean times, given that an Australian aviation think tank has said 90% of international carriers will be bankrupt by 30th May, given a 2.75% fixed interest for 10year loan has been provided, given the loan has largely been provided by a couple of the major shareholders and given Qantas’ worldwide reputation then it puts them in a great and enviable position to return. Best of luck Qantas.
Antonio
says:Can anyone please answer my question, I have a flight to Bali I July, I was told that if I cancel my flight now , it would cost me 600 dollars a ticket
Steven
says:How about we stand behind and support this great Australian airline! It is the envy of every airline in the world. Would you rather that we have China airlines or Singapore airlines as our national carrier, all owned and operated by Chinese millionaires or Chinese state owned enterprises.
john
says:I suspect “someone” has an issue with QF. One of the worlds great airlines headed by a brilliant CEO (who sometimes says too much).
Miss Basset
says:Is this the same ‘John’ as the one spreading doom and gloom and general nastiness on the US OMAAT blog (and others probably), or is there a coronavirus-like outbreak of Johns?
Antonio
says:Hi I forgot to mention it was qantas , I paid directly to qantas