Qantas gives staff $90 million bonus

FOLLOWING a dramatic turnaround in the airline’s fortunes, Qantas has decided to give its workers a nice present.

Qantas Freight loading cargo at Sydney Airport. Supplied

QANTAS will give its workforce $90 million in bonuses following a dramatic turnaround in the airline’s fortunes.

After a horror 2013/14 financial year in which Qantas posted a record $2.8 billion loss, the airline sought to get all staff to agree to an 18-month pay freeze in an effort to bring down costs. The airline’s performance improved rapidly in the 12 months to June, thanks to a slide in fuel prices and an easing in competition with rival Virgin.

It posted a net profit of $203 million for the six months to December 31, and its share price has almost tripled since January 2014.

Qantas now says it will give staff who signed the pay freeze agreement a one-off payment worth five per cent of their base annual salary.

The move will cost around $90 million, which equates to an average of $3,200 per eligible worker.

Chief executive Alan Joyce said the airline’s transformation was moving ahead of schedule.

“The rapid turnaround of the Qantas Group has only been made possible through the dedication and hard work of all our people,” he said.

“Our ability to make these bonus payments reflects a bright future for the Qantas Group, provided we stay focused on fully delivering the transformation program that has brought us this far.” Qantas is looking to strip out $2 billion in costs from its operations and estimates it achieved at least $875 million worth of benefits during the 12 months to June 30.

Originally published as Qantas gives staff $90 million bonus