‘Need for atonement from the board’: Qantas faces angry shareholders

Qantas shareholders have accused previous CEO Alan Joyce of using the airline as a personal play and that the board needs to atone for its past.

Angry Qantas shareholders have grilled Qantas over the ‘ghost of Alan Joyce’ which has damaged the long-term reputation of the airline.

While Qantas was hoping a 48 per cent rise in share price in this year alone would calm shareholders, instead they focused on the sins of their past CEO.

Qantas shareholders have accused previous CEO Alan Joyce of using the airline as a personal play thing and that the board needs to atone for its past.

“There is brand damage to the point where Qantas’ own shareholders are cheering on competition from Qatar Airlines,” the shareholder said.

“I feel the ghost of Alan Joyce in the room. Qantas has a proud reputation of 85 years of great service and then Alan Joyce, which became the personal plaything of the CEO,” he said.

“Alan Joyce had two months working for the company in the last financial year. I would suggest that of that $3.4 million, of which $3 million are long-term incentives, they should be rescinded,” he says.

“Alan Joyce deserves base salary in my view.”

Qantas is still facing scrunity following the resignation of former CEO Alan Joyce: NCA NewsWire / Christian Gilles

New chairman John Mullen replied saying that the he understood the shareholders views, but disagreed with dwelling on the past.

“Nobody is shying away from the issues that happened in the past, but at some point you need to draw the line,” Mr Mullen said.

“I don’t think you could see much more significant change, I’m addressing you as a new chair and we have a new CEO in Vanessa and new management.

There has been more dramatic change then occurred in any other public company.

Even though shareholders voiced concerns about remuneration packages, Qantas avoided a second strike at its AGM, with its remuneration package being voted overwhelming in favour of.

Less than 25 per cent of Qantas shareholders voted against the report, meaning that the board will not face a spill motion.

There were fears prior to the AGM that Qantas shareholders would vote against the remuneration report, with 83 per cent of shareholders voting no last year.

Despite calls about Alan Joyce, Qantas was upbeat saying they are focusing on the “basics right” and investing in the long-term outlook for the airline, while acknowledging past mistakes.

In her second AGM Qantas CEO Vanessa Hudson, began her speech by trying to create an airline Australian “could be proud of.”

“We have started to make some progress in the past 12 months, but there is more that can be done.

“We increased our investment in the things that matter most to our customers. We have seen that reflected in our improved operational performance across Qantas and Jetstar.

“We have improved our in-flight catering and overhauled the app, putting more information and more control in the hands of customers.”

Qantas has seen its brand tarnished following the illegal outsourcing of jobs, huge salary packages and perks for outgoing executives, and selling tickets for flights that are already sold out or cancelled which ultimately cost the airline $100 million in fines from the ACCC.

Part of the leave entitlements to executives saw former CEO Alan Joyce depart the airline with more than $18m in base pay and bonuses, even after $9m was stripped from his entitlements in 2023.

During his opening address John Mullen remained upbeat, praising the performance of the board and progress the airline has made in the last 12-months.

Qantas labels events of the last 12-months as “unfortunate”, while praising Alan Joyce’s role throughout the last 15-years.

Qantas CEO Vanessa Hudson said she is acknowledges the airline doesn’t get it right but said the “airline has turned a corner.”

It was also recently revealed that he and a partner will receive up to $2 million in free first-class flights.

Qantas remains upbeat despite shareholder concerns. NewsWire Photos

Despite a scandalous year, Qantas from a share price perspective has actually outperformed.

Qantas closed at $7.91 prior to the AGM, which is an highest for Qantas, which even during the pre-covid peak days for the airline only reached $7.40.

The airline is currently trading up 48 per cent year-to-date, trading up more than seven times higher than the broader ASX 200 which is up 7.58 per cent in 2024.

Across the group, Qantas announced domestic revenue per available seat kilometre, a key profitability metric for airlines, is up 3 to 5 per cent for the first half of the 2025 financial year. The airline said it expects underlying EBIT of 10 per cent growth for the financial year.

Qantas also announced a $1000 “thank you” payment to each of its 27,000 employees before the end of the calendar year.

“Around 27,000 Qantas Group employees were advised today of a thank you payment, as part of recognising the contribution they have made over the past year. A total of $28 million cost will be recognised in the first half of financial year 2025,” Qantas said.

Qantas CEO Vanessa Hudson faced questions about Alan Joyce and the current pay packet for executives. Picture: NewsWire / John Appleyard

Qantas said adding Classic Plus to domestic flights would give frequent flyers more options to fly where they wanted, when they wanted.

“This investment is driving greater member engagement with the program and our partners which is key to the growth and success of Qantas Loyalty.”

At the same time as the AGM hundreds of Qantas staff are walking off the job across Australian airports for 24 hours demanding better pay.

An estimated 300 Qantas engineers will strike across all major Australian airports on Wednesday as workers continue to battle for better wages.

Staff in Melbourne’s Tullamarine Airport will launch the strike at 10am Wednesday, and engineers in Brisbane’s International Terminal are expected to strike from 1.30am.

Both cities are also expected to hold rallies as part of the strike, though the airline assured travellers they won’t be affected by the strike.

Ms Hudson addressed concerns of workers during the AGM

“We absolutely value our engineers. I want to thank them as I have thanked everyone for what we have achieved for the last 12-months.

“We want to see pay increases for our metal workers, apprentices and other benefits for these workers.”

“At the moment the union has chosen industrial action, but there is a pathway for a resolution. We want to find a way to work together with the unions.”

“To get an outcome there needs to be a mutual agreement.”

Originally published as ‘Need for atonement from the board’: Qantas faces angry shareholders