$1000 cash ‘thank you’ bonus for 27,000 Qantas staff as carrier warns of fuel bill risks

Qantas will hand out $1000 ‘thank you’ payments as a reward for each of its 27,000 staff even as it warns of continuing geopolitical threats to its fuel bill.

In a trading update issued Friday ahead of its annual general meeting in Hobart, Qantas said tensions in the Middle East and the ongoing war between Russia and Ukraine created ongoing volatility in fuel prices, which would have “immediate impacts if they were to escalate or de-escalate”.

“At current prices, the expected fuel cost for the first half is now estimated at approximately $2.55 billion, inclusive of hedging and gross carbon costs,” Qantas said.

“The group continues to maintain disciplined hedging in line with long-term practices, with strong participation should jet fuel prices fall from here.”

The estimated $2.55b fuel bill is down from an earlier forecast of $2.7b issued in August.

Qantas is bracing for what could be a fiery AGM later in the day as shareholders get their chance to vent their anger at senior executives and the board in the wake of a laundry list of scandals to have rocked the carrier and tarnished its public image over the past 12 months.

The meeting will also close the chapter on WA businessman Richard Goyder’s at-times controversial tenure as the airline’s chair when he hands over to former Telstra boss John Mullen.

Qantas said it continued to see first-half trading in line with expectations, with both the Flying Kangaroo and budget operator Jetstar seeing stable demand.

“Jetstar domestic’s unit revenue is outperforming previous expectations due to stronger than anticipated travel demand,” it said.

“Qantas domestic’s load factors and demand for corporate travel continue to improve year on year. Group domestic RASK (revenue per available seat kilometre) is now expected to increase 3 to 5 per cent in the first half of financial year 2025, compared to the prior corresponding period.”

But increased competition on international routes was expected to see that measure fall by between 7 and 10 per cent compared to a year earlier.

Qantas shares will open trade on the Australian Securities Exchange at $7.91 — up 63 per cent over the past year.