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Qantas secures new $1bn loan, shares soar

written by Adam Thorn | March 25, 2020

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.

This funding increases Qantas’ available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.

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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 Boeing 737 800 departing from Melbourne Tullamarine (Rob Finlayson)

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.

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Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

14 Comments

  • 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

Leave a Comment

Your email address will not be published. Required fields are marked *

Qantas secures new $1bn loan, shares soar

written by Adam Thorn | March 25, 2020

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.

This funding increases Qantas’ available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.

Advertisement
Advertisement

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 Boeing 737 800 departing from Melbourne Tullamarine (Rob Finlayson)

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.

PROMOTED CONTENT

Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

14 Comments

  • 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

Leave a Comment

Your email address will not be published. Required fields are marked *

Qantas secures new $1bn loan, shares soar

written by Adam Thorn | March 25, 2020

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.

This funding increases Qantas’ available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.

Advertisement
Advertisement

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 Boeing 737 800 departing from Melbourne Tullamarine (Rob Finlayson)

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.

PROMOTED CONTENT

Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

14 Comments

  • 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

Leave a Comment

Your email address will not be published. Required fields are marked *

Qantas secures new $1bn loan, shares soar

written by Adam Thorn | March 25, 2020

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.

This funding increases Qantas’ available cash balance to $2.95 billion with an additional $1 billion undrawn facility remaining available.

Advertisement
Advertisement

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 Boeing 737 800 departing from Melbourne Tullamarine (Rob Finlayson)

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.

PROMOTED CONTENT

Fly into Spring with Australian Aviation’s latest print edition. Starting from $49.95 a year, you can read comprehensive coverage on all sectors of the industry to keep you in the loop. Get your hands on the subscription today. Subscribe now at australianaviation.com.au.

14 Comments

  • 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

Leave a Comment

Your email address will not be published. Required fields are marked *

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