Just one day after the troubled airline revealed a “staggering” decline in earnings, Qantas will increase prices by more than 20% and cancel additional flights.
Customers will pay an additional 10% on domestic flights and 20% on overseas flights, with some trips costing passengers an additional $300.
While a ticket from Brisbane to the Harbour City might increase from $269 to $295, a journey from Melbourne to Sydney would cost $250 rather than $230.
As it strives to recover from recent blows to its image, Qantas has placed the responsibility for the price increase on the growing cost of fuel and historically high rates of worker sickness.
Since the reopening of international crossings in November of last year, the airline has struggled with delays, cancellations, lengthy boarding procedures, and baggage handling issues.
Alan Joyce, the CEO of Qantas, said that in addition to a number of air hostesses, bag handlers, and ground personnel, at least 320 pilots call in ill on a daily basis on average.
Mr. Joyce said the airline had lost $1.9 billion and had failed to provide passengers the kind of service they deserved on Thursday.
The CEO of Qantas recognised that the company needs to improve and blamed personnel shortages on the seven-day Covid isolation periods at a news conference.
All of these led to issues that were well publicised, including lengthy lines, delayed flights, and lost luggage, he said on Thursday.
For our workers, it was quite difficult, and for our passengers, it was extremely aggravating.
“It was just not good enough,” and for that we are sorry.
According to Mr. Joyce, the Qantas Group reported a statutory loss before tax of little under $1.2 billion and an underlying loss before tax of approximately $1.9 billion.
He said that the flagship airline had lost more money in the last three years due to the Covid-19 outbreak than they had earned in the previous five.
The CEO acknowledged that the numbers were challenging and called them “staggering.”
This raises our overall losses from the pandemic’s beginning to more than $7 billion and our revenue losses to more than $25 billion, the executive added.
“The previous year was difficult for everyone. It’s amazing that we were able to navigate through this.
Mr. Joyce responded to requests from the Transport Workers Union (TWU) to quit as CEO at the same news conference after he issued all frequent fliers a $50 “apology coupon” for the lapse in service standards earlier this week.
He disregarded the calls, asserting that the airline had expressed regret for its errors and acknowledged that Qantas had not been meeting customers’ expectations.
He said, “I believe I have had more calls for resignation than any other CEO and perhaps any other public person out there.”
“I believe (previous CEO) Geoff Dixon had that before I took the position, and I’m certain the next CEO will need to retain the same staff in order to manage or collaborate with.
We’re the only airline, as far as I know, that consistently does it, and we’ll keep doing it because it’s the right thing to do.
By the end of this year, Mr. Joyce predicted that the airline will recover from its “staggering” losses and achieve its previous levels of profitability.
He said that as more passengers begin to fly again after months of border restrictions, the airline is rushing to release additional planes from storage.
On Sunday, the CEO apologised for the return to flying’s difficulties and provided frequent flier customers a $50 “apology coupon.”
In a video posted on Sunday, he complained that “too many of you” had experienced flight delays, cancellations, or lost luggage during the previous several months.
There are valid reasons for this, but they fall short of what you should have grown to expect from Qantas.
As hundreds hurried to collect their sorry credits on Monday morning, Qantas’ frequent flyer website collapsed, preventing them from using the advantages.
Passengers may utilise the travel credit when booking a return Qantas ticket.
Access to the Qantas club or international business lounge is also available to frequent travellers with silver level and above.
According to statistics from the Bureau of Infrastructure and Transport Research Economics, QantasLink topped the list of flights cancelled in April of this year with 591, followed closely by Qantas with 426.
With one out of every 13 Qantas flights cancelled in May, that number increased to 7.6% of all flights, up from 5.1% in April.