Australia's biggest airline Qantas posted an annual loss of over 1.4 billion U.S. dollars on Thursday (August 20).
CEO Alan Joyce said trading conditions were the worst in the airline's 100-year history.
Joyce pointed the finger at border closures between Australian states that have severely held back domestic travel.
"So the flexibility is going to be needed and we know we are going to need that all the way through this, because this is going to be a choppy recovery, borders will open and then they will close and we will have to keep on managing that way."
The big hit comes despite the airline making wide-sweeping cuts to try and soften the blow from the coronavirus -- Joyce himself is taking no salary, and other management executives have taken a pay cut.
Qantas has also dialed down their international flights and its only running 20% of its usual domestic schedule in August.
Despite the grim results Qantas said that they were optimistic that the domestic tourism market could pick up.
But Joyce argued the recovery relies on people's jobs and state borders opening back up.
"We need to get people back in jobs otherwise we are going to have a cliff that's going to be bigger than the financial impact that COVID-19 has already caused. And we need to do that in a safe way, but at the moment it's not clear what those rules are going to be."