Qantas will cut flights from some of its busiest Australian routes as it struggles to cope with the high cost of fuel and staffing shortages at airports.
The airline announced on Friday that it would cut domestic capacity through to March 2023.
It said the impact on customers was expect to be "minimal" as flights would be removed "mostly from high frequency routes".
"Those affected will be contacted directly with alternatives as close as possible to their original timing, usually within 1-2 hours," Qantas said in a statement.
"Many of these adjustments have already been made with the remainder to flow through in coming days."
There are no changes to Qantas's international flights.
The cuts will take the airline's domestic capacity to 99 per cent of pre-pandemic levels in the first quarter of the new financial year, and 106 per cent in the second quarter.
Qantas has been able to recover the cost of high fuel prices in the international market through higher fares, chief executive Alan Joyce said this week, but has been unable to do so in the domestic market.
Friday's announcement came as Qantas's on-time performance levels have been falling and Australian airports have been struggling to secure enough workers after layoffs during the pandemic.
Sydney Airport last week held a recruitment fair in an effort for companies to hire 5,000 needed staff.
Mr Joyce said on Sunday the airline industry was "rusty" as a result of the hibernation during COVID-19 but he was confident Qantas would be able to fix its issues within a few weeks.
The airline said it planned to give $5,000 bonuses to up to 19,000 staff when they signed fresh union contracts after a two-year wage freeze during the pandemic.
The Transport Workers Union, Flight Attendants Association of Australia and Australian Services Union have called for the $5,000 payment to be given to all workers without strings attached, including the 2,000 workers who lost their jobs to outsourcing.
Jetstar boss steps down
Qantas also said on Friday that Gareth Evans, the head of its low-cost arm, Jetstar, would step down from his role in December after 23 years with the group.
Investors and analysts had viewed Mr Evans as one of the top contenders to eventually succeed Mr Joyce, who has led Qantas since 2008 and plans to stay until at least the end of 2023.
Several other potential successors have already left for CEO roles elsewhere, in part because of Mr Joyce's unusually long tenure.
Mr Evans will remain with the group to work on key projects before leaving in 2023, the airline said, adding that an internal recruitment process was under way to appoint a new CEO for Jetstar.
ABC/Reuters
