Loyalty runs out for Qantas frequent flyer boss Olivia Wirth

Olivia Wirth has resigned from the embattled airline after 14 years with the carrier and five months after being passed over for the top job in favour of Vanessa Hudson.

Qantas will look to promote from within to replace high-flying Loyalty boss Olivia Wirth, whose resignation was announced on Monday, five months after she missed out on the airline’s top job.

A statement to the ASX said Ms Wirth was leaving to “pursue other opportunities” but would remain at the airline until February.

The announcement triggered another fall in the Qantas share price, before closing down 12c at $4.90. The stock has slumped 26 per cent since the start of June.

In May Ms Wirth was passed over for the job of CEO in favour of Vanessa Hudson, sparking speculation she would not stick around for long.

The chatter only increased last week when Ms Wirth was nominated to join the Myer board.

When asked recently about the likelihood of executives leaving, Ms Hudson said such movement created opportunity for “new younger, energetic leaders to step up”.

“I’m really confident that as we move forward we’ve got a highly capable team and we’ve also got an incredibly strong talent pipeline that gives me the confidence that if we have movement, we’re going to be able to manage,” Ms Hudson said on September 22.

Ms Wirth joined Qantas in 2009 as head of corporate affairs and public relations, before being appointed chief customer officer in 2017, and then Loyalty CEO a year later.

Under her leadership the frequent flyer program became one of the most profitable parts of the Qantas Group, and increased its membership to more than 15 million.

In a brief statement Ms Wirth said she was really grateful for the opportunities afforded her over the years.

“At its core, Qantas is an incredible company and brand and I’ve loved being part of it,” said Ms Wirth.

“I’m extremely proud of what the team at Loyalty has achieved and I’m looking forward to delivering more improvements for members before I leave.”

Ms Hudson acknowledged the “significant growth” overseen by Ms Wirth in the Loyalty business, which had added 3 million members and delivered record earnings.

“During Covid, Loyalty was one of the few parts of our business that was able to carry on, which took a lot of hard work and imagination,” Ms Hudson said.

“There are many improvements for customers in the pipeline that Olivia will continue working on with her team over the next few months, as part of setting this part of the business up for continued success.”

She also pointed out Ms Wirth had been a member of the group management committee for more than a decade, and said “on behalf of the organisation I’d like to sincerely thank her for everything she’s done”.

Although investors generally took the view that renewal was important for Qantas after a tumultuous time in recent months, the departure of Ms Wirth was considered a serious loss of talent.

An Australian Shareholders Association spokeswoman said succession was a challenge a company had to manage.

“Someone who wants to take the next step in their career will see no other option than to go elsewhere,” the spokeswoman said.

Airline insiders said it was expected a replacement would be found from within Qantas although an external hunt would also be conducted.

There was no formal “second-in-charge” at Qantas Loyalty with previous appointments to the role, including that of Ms Wirth, coming from the group management committee.

Frequent flyer expert Adele Eliseo from the Champagne Mile, said a program as large and complex as Qantas frequent flyers would require a very specialised skill set.

“There are not many people in Australia who would have the experience that Ms Wirth has brought to the table,” Ms Eliseo said.

“During Covid, they did an extraordinary job of keeping members engaged and active in the program in a period when people couldn’t travel.”

The appointment of a chief people officer was also announced by Qantas on Monday, with Catherine Walsh coming in to fill the role from another company familiar with controversy — PwC.

Ms Hudson said she was thrilled Ms Walsh was bringing “her skills and experience” to the newly created position which aimed to give employees’ “a voice” on the leadership team.

“Ultimately, building a stronger culture and better relationships with our people is one of my highest priorities and a shared responsibility across management,” Ms Hudson said.

“As our chief people officer, Catherine will support those collective efforts by ensuring we always value the incredible contribution our people make to this organisation and listen to their insights, especially as we welcome thousands more to the group to support our growth.”

Ms Walsh said it was an honour to be joining Qantas in “such an important role and at a pivotal time”.

“I’ve spent a lot of time on Qantas flights and the dedication and professionalism of the people always shines through, so I look forward to being part of the broader team,” she said.

Qantas was also expected to soon announce a replacement for QantasLink CEO John Gissing who was due to retire at the end of the month.

Originally published as Loyalty runs out for Qantas frequent flyer boss Olivia Wirth