Qantas says sorry, shells out for improvements to win back Australians: ‘we know we’ve let our customers down’

Since pandemic travel restrictions eased last year, a spike in lost bags, flight cancellations and telephone wait-times have frustrated passengers. The airline’s simultaneous record profits reinforced the perception that Joyce neglected customers to bolster the company’s bottom line.

In a statement on Monday, Qantas said it will spend an extra A$80 million (US$52 million) on so-called passenger improvements in the year ending June 2024, in addition to the A$150 million previously allocated for the job.

There will be more and better trained workers in Qantas call centres, larger numbers of seats available for air miles, and more generous support for passengers when things go awry, the airline said.

As it attempts to woo back disgruntled passengers, Qantas is also being bashed by regulators, the judicial system and lawmakers. Australia’s top court this month ruled that the airline illegally sacked almost 1,700 ground workers during the pandemic, opening it up to compensation payments.

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And an ongoing parliamentary inquiry is investigating the airline’s influence on national aviation policy after the government this year blocked a request by Qatar Airways to operate more flights into Australia following lobbying from Qantas.

Hudson on Friday sent a video apology to customers.

“We know that we’ve let our customers down and we’ve got some things wrong, and I want to say that we’re sorry,” she said. “I want you to know that we’ve heard you, and that we are working hard to rebuild your trust in us.”

Still, there’s little sign that Qantas is losing business from all its troubles. “Overall travel demand remains strong,” Qantas said on Monday. It even flagged further increases in fares in coming weeks if fuel prices stay where they are.

“Any changes would look to balance the recovery of higher costs with the importance of affordable travel in an environment where fares are already elevated,” Qantas said.

Qantas and its low-cost division Jetstar expect to carry more than 4 million passengers over the September and October school holidays and Australia’s traditional end-of-season sports finals. This compares with around 3.7 million passengers over the same four-week period last year, it said.