'Not good enough': Qantas' desperate move to bring back customers

The airline CEO said he knew "return to flying hasn't gone smoothly". Photo / Getty

Australia's largest airline is offering its frequent flyers a AU$50 travel credit, in a desperate attempt to revive its brand following an increase in complaints.

Qantas will give the majority of its 14 million members the credit as a way of saying "thank you" for their patience and commitment to the airline during its post-Covid recovery.

In the last six months, the flying kangaroo has copped criticism for baggage mishandling, staff shortages and increased flight cancellations as flights return to pre-pandemic levels.

But today, Qantas CEO Alan Joyce has apologised to customers for the inconvenience caused by the airline's unideal service.

"We know the return to flying hasn't gone smoothly. Over the past few months too many of you have had flights delayed, flights cancelled or bags misplaced," Joyce said in a video, which will be directed to customers in an email on Monday.

"There are good reasons why, but when it comes to what you expect from Qantas, it's not good enough."

Joyce then went on to apologise on behalf of the carrier, reassuring its passengers that the airline is "working hard" to restore its reputation as the country's leading airline.

In line with its strategy to bring back passengers, all Australian and New Zealand Qantas frequent flyer members will be eligible for a AU$50 voucher to put towards a return flight.

Additionally, those members who are of a silver tier or higher will gain exclusive access to the Qantas club or international business lounge and a 12 month status extension, while platinum members and above will receive a gift of Qantas points.

Finally, Qantas will extend its commitment of up to 50 per cent more classic reward seat availability through to 30 June 2023, with the first round to be released shortly.

Qantas frequent flyer members can expect to receive an email on Monday on how to claim their voucher and additional bonuses for the respective tiers.

"As well as saying sorry, we also want to say thank you. We're investing in a range of initiatives … which equates to many millions in discounts," Joyce said.

The CEO also announced that the airline has recruited more than 1500 staff since April and has adjusted rosters and schedules to overcome a 50 per cent jump in employees taking sick leave.

The airline will also roll out new technology to enhance customer experience, which is valued at AU$15 million (NZ$16.6 million).

"Our teams continue to do an amazing job with their efforts and the changes we're making. Things have already improved."

Federal government data revealed the airline lost AU$1.2 billion (NZ$1.3 billion) in the first half of the 2022 financial year, largely due to multiple Covid lockdowns in Sydney and Melbourne.

And while the airline has been working hard to get its planes back in the air, bad weather, staffing shortages as well as a bout of Covid-19 and flu cases has challenged that goal.

Earlier this month, the airline asked its senior executives and managers to step down from their usual roles to assist ground staff, due to major staff shortages.

However, things are looking up for the airline with Qantas stepping up its game in the last two months, as cancellations decreased from 8.1 per cent in June to 6.5 per cent in July.

"We're already seeing a sustained improvement in baggage handling and on-time performance and while factors out of our control like weather can have an impact on our schedule, we expect things to keep improving each week," Joyce said.