Qantas Unveils $80 Million Investment in Customer Service to Regain Public Trust
The national carrier plans to address “customer pain points” and may review airfare prices.
Qantas is aiming to win back the heart of the nation with an $80 million investment in customer improvements.
The news comes after new Qantas CEO Vanessa Hudson apologized to customers last week amid multiple challenges for the airline.
On Sept. 25, the company revealed its plans to address “customer pain points” with the multi-million dollar funding.
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New changes will include increasing the number of frequent flyer point seats, improving catering on flights, and addressing contact center issues.
The airline will use company profits to fund the investment, in addition to the $150 million already budgeted for the 2024 financial year.
The Qantas share price fell 1.22 percent during trading on Sept. 25 and is now sitting at $5.245 at the time of publication.
Fare Price Review?
Qantas indicated that airfare prices could undergo review due to higher fuel prices.
The carrier noted that fuel prices have increased by 30 percent since May 2023, including a 10 percent hike since August.
This fuel price increase is driven by higher oil prices, larger refiner margins, and a lower Australian dollar, according to Qantas.
“The group will continue to absorb these higher costs, but will monitor fuel prices in the weeks ahead and, if current levels are sustained, will look to adjust its settings,” Qantas said.
“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 stated that its fuel bill for the first half of the 2024 financial year is now expected to increase by $200 million to $2.8 billion after hedging.
However, Qantas emphasized that it is in a “very strong financial position” with regard to debt levels and “continued strong revenue intakes.”
Travel Demand ‘Strong’
Despite recent challenges, Qantas stated that travel demand “remains strong” and that trading conditions are similar to those in the final quarter of the 2023 financial year.
Qantas and Jetstar anticipate that over 4 million passengers will travel with the airline during the September-October school holidays and football finals.
The company expects to operate 35,000 domestic and international services during this period, up from 28,000 at the same time last year.
Recent Drama
Qantas CEO Hudson apologized to customers in a video statement on Sept. 22.
“I know that I have let you down in many ways, and for that I am sorry,” she said.
This follows former CEO Alan Joyce leaving his position two months early amid legal action from the Australian Competition and Consumer Commission (ACCC). Qantas allegedly sold 8,000 tickets for plane flights that had been cancelled.
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