Qantas dips into profits to fix customer ‘pain points’
Alex Mitchell |
Under-fire Qantas will spend $80 million of its massive profits on improvements but some stakeholders believe it will take more than that to win back disgruntled customers.
A Qantas Group market update released on Monday revealed the airline will use profits to appease customers with improvements, adding to the previously-budgeted $150 million.
It will also fork out an extra $200 million over six months on increased fuel costs but admits fares will increase if fuel prices don’t come down.
Labor Senator Tony Sheldon, who has spearheaded the government’s response to the Qantas crisis, was unimpressed, renewing his call for chairman Richard Goyder to resign.
“Qantas keep making announcements and apologies, but actions speak louder than words and we still aren’t seeing appropriate actions,” he told AAP.
“Not only does Mr Goyder remain the chair, but he and the rest of the board have received massive pay increases of between nine and 44 per cent … until we see Qantas end its ideological war on its workforce, nothing will change at the company.”
New chief executive Vanessa Hudson told customers on Friday the embattled airline had “let you down in many ways”, before releasing the market update on Monday morning.
“This additional investment is aimed at addressing a number of customer ‘pain points’,” the statement reads.
“(That include) better contact centre resourcing and training, an increase in the number of seats that can be redeemed with Frequent Flyer points, more generous recovery support when operational issues arise, a review of longstanding policies for fairness and improvements to the quality of in-flight catering.”
And profits are set to take another hit as fuel prices continue to rise.
The airline will spend $2.8 billion on fuel in the back half of 2023 – an increase of about $200 million – after a 30 per cent price spike since May.
“The group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings,” the statement reads.
Transport Workers’ Union national secretary Michael Kaine, who also wants Mr Goyder to resign, said it wasn’t fair customers should be forced to pay even more for flights.
“Ticket prices have increased 32 per cent on pre-COVID levels while experienced workers have been forced from the industry and service standards have plummeted,” he said.
“An eye-watering $2.5 billion record pre-tax profit shows it is not disappointed customers that should be copping higher fares but the airline that wants us to believe it is ready to change its ways.”
Qantas shares were down 1.0 per cent to a one-year low of $5.255 by noon after the airline’s statement.
AAP
