Australia’s Transport Workers’ Union has called for the resignation of Qantas CEO over their perceived failure to deliver on promises and their treatment of workers. According to the union, Qantas’ CEO, Alan Joyce, has made “empty promises to frustrated passengers” and has been implementing tactics to suppress wages and silence workers.
On a positive note, Qantas Airways, Australia’s flagship carrier, reported a record annual profit, signaling a strong recovery in air travel demand post-pandemic. The airline achieved an underlying profit before tax of $2.47 billion Australian dollars ($1.6 billion) for the year ending on June 30. This is a significant improvement compared to the previous year’s loss of A$1.86 billion.
To reward shareholders, Qantas also announced a share buyback program worth A$500 million, which will begin in September. CEO Alan Joyce attributes the company’s success to its strong position in Australia’s airline industry, driven by low cancellation rates and excellent on-time performance.
Demand for domestic and international flights has been steadily recovering since the pandemic, prompting Qantas to increase its fleet. This growth was reflected in the company’s stock performance, with Qantas shares closing more than 1% higher on Thursday.
In line with its expansion plans, Qantas has placed a substantial order for new aircraft. The company has ordered 12 Airbus A350 and 12 Boeing 787 planes, signaling its commitment to retiring older aircraft and renewing its fleet. This investment is made possible by Qantas’ strong balance sheet and improved earnings, which have been boosted by cost-saving measures amounting to $1 billion.
Exciting new flight routes are also on the horizon for Qantas. By 2025, the airline plans to launch long-haul direct flights from Sydney to London and New York, setting itself apart from other carriers in the industry.
Additionally, Qantas CEO Alan Joyce anticipates a significant decrease in air fares in the next 12 months. International capacity is set to increase by 6.4 million seats next year, resulting in more competitive pricing. Currently, domestic air fares are approximately 20% higher than pre-pandemic levels due to inflation and higher fuel prices, while international fares have increased by 40% to 50% over the past four years.
In November, Alan Joyce will be retiring from his position as CEO, and Vanessa Hudson will take over as Qantas’ first female CEO. This transition marks an important milestone for the airline and reflects its commitment to diversity and inclusion.
Overall, Qantas’ strong financial performance, fleet expansion plans, and upcoming new flight routes position the company for continued success in the post-pandemic travel industry.
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