Qantas will further cut its domestic flight schedule in response to rising fuel prices, as the airline announced it would give nearly 20,000 employees a $ 5,000 payment to share the benefits of its recovery.
The announcement comes as airports are gearing up for a period of high demand driven by the school holidays, and when the federal government confirmed that Qantas had the highest cancellation rate of any national airline last month.
The number of passengers is expected to rise to pre-pandemic levels starting Friday, the last day of the school term in Victoria and Queensland. Schools close a week later in New South Wales and Western Australia.
Qantas said Thursday it will “take all the stops” to make sure the disruptions travelers face at Easter are not repeated during the holiday period.
The airline has tried to blame some of the staff shortages at airports, and Qantas chief Alan Joyce has reportedly written to airport chiefs to raise the issue.
In a market update on Friday, the airline predicted it would have a significant loss this year of between $ 450 million and $ 550 million, and the Qantas group predicted it would return to the underlying profits next year.
He also announced that he will give 19,000 employees a payment of $ 5,000 once the new business bargaining agreements covering them are completed. Qantas will spend about $ 87 million on staff payments.
In a statement, Joyce said the company “cannot afford to permanently raise salaries beyond the two percent threshold we have set, but we can afford to make this one-time payment in addition to the Qantas share rights that already we have given. ”
For July and August, the airline will cut 5% more capacity than the 10% it already announced. The 15% capacity reduction will be extended until September, with a 10% capacity reduction from October to March. The airline will contact customers booked on flights that are discounted.
Although Qantas did not announce any reduction in its international capacity on Friday, it said the group will fly to 83% of pre-Covid levels in the fiscal quarter beginning July, below 90% in the current quarter.
Ahead of the July holidays, Qantas also wanted to thank customers for “their patience and understanding” during what has been “a resumption challenge for the industry globally.”
Qantas has been heavily criticized for delayed luggage and poor punctuality this year, and the Transportation Workers Union says the airline’s decision to outsource baggage handling staff is contributing to the problems.
Qantas said there will be a 15% increase in ground service staff during the July holidays compared to staffing levels during the Easter holidays.
Joyce also announced Friday that Jetstar CEO Gareth Evans will step down in December.
Department of Transportation figures showed that the Qantas network had a one-time arrival rate of 60.7% in May, compared to Virgin Australia with 65.7% and Rex with 75.5%.
Qantas also recorded the highest cancellation rate in May, at 7.6%, while Rex Airlines recorded the lowest, at 1.4%.
The regional airline hit its competitor with the latest data.
“Rex treats his customers with respect and decency; we do not cancel flights en masse and we do not lose trucks loaded with the luggage of our passengers, ”the airline said in a statement on Thursday.
Sydney Airport expects more than 2 million passengers to pass through its doors between June 24 and July 17, and 1.5 million of them are expected to make a domestic flight.
Melbourne Airport expects similar figures, with more than 2.1 million people scheduled for its terminals.
Sydney Airport Executive Director Geoff Culbert warned passengers to get ready for queues amid widespread staffing problems.
“The main cause of these challenges is that all airport companies are rebuilding their workforce and doing so in the tighter labor market in almost half a century,” he said.