Qantas (ASX:QAN) announces flight cuts, Jetstar CEO Gareth Evans to depart

Qantas has announced it will be further cutting domestic flights to help combat rising fuel prices while Jetstar chief executive Gareth Evans is departing his role at the end of the year.

Qantas revealed the news in a trading update, saying it will cut an additional 5 per cent of domestic flights for July, August and September. This comes on top of a 10 per cent reduction announced in May.

Qantas will cut domestic capacity by a further 5 per cent until the end of September. Credit:James Brickwood

The carrier also announced up to 19,000 employees across the Group will be offered a $5000 payment as the carrier continues to recover financially from the pandemic. Qantas revealed a $1.5 billion drop in net debt over the past six months.

The one-off payment comes as part of efforts to hang onto staff amid mounting passenger frustrations about the airline.

The boost, which will cost the group $87 million, will be only for Qantas workers covered by enterprise bargaining agreements. Management and senior executives are not eligible for the payment.

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Workers will only receive payment after a new enterprise agreement is locked in, and eligibility conditions will apply. 4000 Qantas workers covered by nine already-finalized agreements are due to receive the payment soon.

Qantas chief Alan Joyce said the one-off payment was indicative of the airline sharing the benefits of the travel rebound, which began in December, and to “recognize the great work [staff] are doing”.

“Today, we’re announcing a one-off payment that goes some of the way to acknowledging the sacrifices our people have made, including long periods of no work and no annual wage increases,” he said.

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