Helloworld: Travel sale revenues to remain at 5% of previous levels until Sep-2020

    Helloworld outlined (01-May-2020) the following impacts of coronavirus and the company’s cost saving initiatives:

    • Expectations of revenues from travel sales and operations to remain at 5% of previous levels until Sep-2020;
    • Reduced personnel by 75% by the beginning of Apr-2020;
    • Since the introduction of Australia‘s JobKeeper allowance, the company has re-arranged employees with 560 personnel working in the Australia and New Zealand business, many with reduced hours;
    • Nett salary costs reduced from AUD12 million (USD7.7 million) per month to AUD1 million (USD639,306);
    • Total cost saving initiatives expected to reduced nett monthly operating expenditure from AUD23 million (USD14.7 million) per calendar month to AUD2 million (USD1.3 million), from Apr-2020 onwards;
    • One-off redundancy costs of AUD420,000 (USD268,508) incurred in Mar-2020, with smaller amounts expected in Jun-2020;
    • Virgin Australia owes Helloworld approximately AUD3.7 million (USD2.4 million) in override and marketing income at 31-Mar-2020.