- Qantas breaks the news Jetstar CEO Gareth Evans will be stepping down from the top job
- The Qantas Group veteran says it’s the “right moment to move on” after 23 years with the company, including stints as CFO, CEO of Qantas International and CEO of Jetstar
- Meanwhile, high fuel prices have pushed Qantas to cut a further five per cent of domestic flights, bringing the total number of flights to be slashed to 15 per cent
- Qantas also says its net debt has improved by $1.5 billion over the last six months, with an expectant net debt of $4 billion by the end of the month
- And as a sweetener to staff, after a two-year wage freeze, up to 19,000 employees will be offered a one-off payment of $5000
- QAN shares are down 1 per cent, trading at $4.48
Qantas (QAN) has broken the news that Jetstar CEO Gareth Evans will be stepping away from the company, while mounting fuel prices have pushed the aviation giant to make further cuts to domestic flights.
Gareth Evans said it was “the right moment to move on” after 23 years with the company, including stints as Chief Financial Officer, CEO of Qantas International and, most recently, CEO of Jetstar for the last five years.
Mr Evans will remain working on key projects with the company until next year, while an internal recruitment process is underway to find his replacement.
Meanwhile, high fuel prices have pushed Qantas to cut a further five per cent of domestic flights, adding to the 10 per cent cut to flights announced in May.
This brings the company’s domestic flight cuts to 15 per cent, which will start being applied in October.
Qantas said most of the cuts would be to “high-frequency routes” and were expected to have a minimal impact on customers.
Qantas has also announced a reduction in net debt, which is expected to drop to around $4 billion by the end of the month — an improvement of $1.5 billion over the past six months.
The company remains on track to return to underlying profit in FY23.
In other news, Qantas said up to 19,000 staff members across the group were set to receive a $5000 one-off payment — a sweetener after a two-year wage freeze.
Meanwhile, just days after major customer complaints of delays and cancellations, Qantas said it would be bringing in more ground handling staff to deal with the school holiday rush, saying it was prepared for any impact of sick leave.
There’ll be a 15 per cent increase in ground handling staff from the previous school holidays, 20 per cent more team members on standby, two widebody aircraft on standby if required, and an increase in security screening resources.
QAN shares are down 1 per cent and trading a $4.48 cents.