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• Growing travel demand underpinning continued recovery . ● Net debt expected to be approximately $ 5.65 billion . ● ● All stood down Australian - based employees able to come back to work . • Group domestic capacity expected to be 102 % of pre - COVID levels for 3Q FY22 rising to 117 % in 4Q FY22 . Group international capacity expected to be around 30 % of pre - COVID levels for 3Q FY22 rising to around 60 % in the fourth quarter . ● QANTAS Spirit of Australia ● ASX / Media Release QANTAS GROUP MARKET UPDATE - BALANCE SHEET RECOVERY FROM DELTA LOCKDOWNS ● Group EBITDA loss of between $ 250-300 million expected in 1H22 . Strong total liquidity position of approximately $ 4.2 billion , boosted by Mascot land sale . Recovery program on track to deliver $ 850 million annual cost benefits by end FY22 . Qantas Loyalty continuing to make strong cash contribution . Qantas Freight expected to deliver a record performance in 1H22 . Project Winton : Airbus A320neo and A220 families chosen as preferred aircraft for domestic fleet renewal . Order anticipated to be finalised by the end of FY22 . Sydney , 16 December 2021 : The Qantas Group has been able to accelerate the repair of its balance sheet and expects to finish the first half of FY22 with a materially better net debt position than it had prior to the start of Delta variant lockdowns in June . This improvement was made possible by the $ 802 million¹ sale of land in Mascot that was not core to the Group's long - term strategy and strong sales that flowed once firm opening dates for international and domestic borders were announced . Continued strength from Qantas Freight and Qantas Loyalty have also made significant contributions to cash flow . Collectively , these positive factors helped to partly offset trading conditions that were heavily depressed for most of the first half due to prolonged lockdowns in Melbourne and Sydney and compounded by border closures in other states that brought domestic flying down to a low of around 30 per cent of pre - COVID levels . Based on current forecasts , the Group expects net debt to be approximately $ 5.65 billion by the end of December 2021 . Liquidity levels continue to remain strong and are forecast to be approximately $ 4.2 billion by the end of the current half . This includes cash of $ 2.6 billion and $ 1.6 billion of undrawn debt facilities . The Group has maintained its Baa2 investment grade credit rating . While the recent boost in travel activity has partially offset the material impact from months of lockdowns , the Group nonetheless anticipates a significant loss in the first half . Assuming no further lockdowns or significant travel restrictions , the Group expects an Underlying EBITDA loss for the first half of FY22 in the range of $ 250 million to $ 300 million . When compared to the prior corresponding period , this reflects stranded costs due to sudden lockdowns and a lower level of aircraft hibernation to facilitate a faster ramp - up based on the national recovery roadmap . 1 $ 758 million settled on 16 December 2021 . oneworld Qantas Airways Limited ABN 16 009 661 901 Further information and media releases can be found at the Qantas website : qantasnewsroom.com.au