Yesterday’s half-year results make one thing clear: Qantas’s record profits continue to be built on the backs of the very people who have carried this airline through crisis after crisis, and who, every day, deliver our passengers safely and efficiently to their destinations.
The Qantas Group reported an Underlying Profit Before Tax (UPBT) of $1.46 billion, a 5% increase from the previous year. Operating margins have held steady at over 12%, and this half-yearly result showed gains across all reported seat kilometre metrics. In just these six months, Qantas has chosen to share these profits with shareholders to the tune of $400 million in the first half of this financial year, with another $450m forecast in the second half (dividends of $300m and a $150m share buy back).
While the company celebrates its financial position, we are seeing cuts in other areas. In addition, drafting of the Long Haul in-principal agreement continues to drag on, now stretching beyond four months.
Delaying the release of the draft EA at least clarifies one thing: we now know exactly how much value the workforce, including pilots, has created to deliver these profits. Profits that the company is eager to share with shareholders but is reluctant to return to those who actually generate them.
Pilots, who endured the shocks of the Global Financial Crisis, COVID and every round of cost-cutting that followed, have faced repeated wage freezes and are told time and again to trade conditions just to keep pace. The same workforce the company now depends on to deliver its next phase of profit-driven expansion.
After years of losses, the Qantas International business has continued to deliver strong results post COVID ($300 million Underlying Earnings Before Interest and Tax). As more A321s and 787s are delivered, the A350 fleet comes online, and Project Sunrise pushes operational demands further than any airline has attempted, pilots will once again be called upon to uphold world-leading standards of safety, efficiency and professionalism. This effort will generate premium yields and further strengthen the company’s market position.
It is only fair that pilots expect an agreement that reflects this reality and provides fair value given the financial success they help create daily in the operation.
The AFAP expects the completed draft LH EA next week for review. It remains our belief that in order for an agreement to be successful, it requires fair and proper recognition of the contribution of the pilots instead of the continued slide backwards that has been the hallmark of the last few agreements.
After years of sacrifice, wage freezes, and now an expired EA, it is time for the company to fairly reward the professionals who drive its profits and ensure safe, sustainable working conditions. The AFAP will continue to advocate firmly on your behalf, with a clear understanding of our industrial leverage and the tools at our disposal.
Questions and Feedback
If you have any questions or feedback please contact your AFAP Qantas Pilot Council representatives at
qpc@afap.org.au, or the AFAP legal and industrial team of Senior Legal/ Industrial Officer Pat Larkins (
patrick@afap.org.au), Senior Industrial Officer Deanna Cain (
deanna@afap.org.au) or Executive Director Simon Lutton (
simon@afap.org.au).
Regards,
AFAP Qantas Pilot Council
Michael Egan – Chair
Mark Gilmour – Vice-Chair
Rob Close – Secretary
Michael Armessen – Committee Member
David LaPorte – Committee Member
Josh Chalmers – Committee Member
Rob Gilmour – Committee Member