Qantas Airways Limited (ASX: QAN) has put staff on alert regarding an upcoming $5,000 bonus for employees.
Qantas shares are currently trading at $4.585, a 1.19% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 0.22% so far on Tuesday morning.
Fellow travel shares are also not flying well. The Flight Centre Travel Group Ltd (ASX: FLT) share price is down 2.77% today, while Webjet Ltd (ASX: WEB) shares are 2.79% lower.
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What's happening at Qantas?
Qantas recently revealed it will offer up to 19,000 staff covered by its Enterprise Bargaining Agreement a $5,000 bonus. This is set to follow a two-year wage freeze.
But it has emerged this payment could be at risk if staff are involved in any action that "harms Qantas".
In a question and answer document for employees, cited by the Australian Financial Review, Qantas said:
The workgroup covered by the Wage Freeze Enterprise Agreement must not have engaged in any action that harms Qantas or any Qantas Group company between the announcement date and the payment date
In a market update on Friday, Qantas informed shareholders the total cost of these payments will be $87 million in FY22.
Staff will be paid once new enterprise agreements are finalised. Nine agreements covering 4,000 staff are already complete, with these staff to be paid imminently.
Qantas highlighted travel demand "remains strong" and the company expects to lower net debt to about $4 billion in FY22.
The airline will cut domestic capacity between July 2022 and March 2023 due to rising fuel prices.
Qantas share price snapshot
The Qantas share price has shed nearly 3% in the past 12 months while it has slid more than 8% year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost nearly 10% in a year.
The airline has a market capitalisation of about $8.7 based on today's share price.
