Qantas share price sinks upon call for CEO resignation

The airline and its boss apologised to customers over the weekend, but some critics have labelled it a stunt.

Key points
  • The Qantas share price is more than 2% lower in early Monday trade 
  • The drop comes amid union calls for the Qantas CEO to resign
  • The airline offered its frequent flyers gifts and lounge passes in a bid to quell anger over its recent service standards

The Qantas Airways Limited (ASX: QAN) share price is down 2.13% in early trade Monday with a union calling for chief executive Alan Joyce to resign in the aftermath of his apology to customers.

Over the weekend, Qantas offered its frequent flyers gifts such as $50 credit and lounge passes to quell anger over its service quality this year. 

"Over the past few months, too many of you have had flights delayed, flights cancelled and bags misplaced," Joyce said.

"On behalf of the national carrier, I want to apologise and assure you that we're working hard to get back to our best."

However, Transport Workers' Union national secretary Michael Kaine labelled the apology "a stunt" that does nothing to solve the problems.

"Enough of the gimmicks," he said.

"If Qantas management, or indeed Joyce, really cared about customers, the right thing to do would be to appoint a new CEO with the business acumen to bring back highly trained, experienced workers and treat them with respect."

a crowd of people at an airport stand, some in queues, others looking around, while all drag their bags on wheels beside them.

Image source: Getty Images

Customers and regulators are all frowning at Qantas

Despite Australians again travelling in massive numbers this year after years of interstate and international border restrictions, the Qantas share price has dropped 8.7% so far in 2022.

Customers have heavily criticised the airline for charging a premium over its budget rivals in return for its service, but not delivering on that premise.

Joyce blamed "good reasons" for the issues.

"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."

The news is not much better in the back office either.

Earlier this year, Qantas proposed to acquire its wet lease provider Alliance Aviation Services Ltd (ASX: AQZ) in a $765 million deal.

But recently the Australian Competition and Consumer Competition has expressed concerns about the potential adverse effects of such a takeover on the aviation industry.

The watchdog has the power to block the deal if its final report concludes that is the best route to preserve competition in the sector.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

Sell written several times on board.
Broker Notes

Sell alert! Expert calls time on Corporate Travel and CBA shares

A leading expert expects CBA and Corporate Travel shares to face significant headwinds.

Read more »

Smiling woman taking a video through a plane window with her phone.
Travel Shares

Qantas Airways vs Flight Centre: Which ASX travel stock is the better buy today?

I compare Qantas and Flight Centre on dividends, value, size, and performance to decide which ASX travel stock looks better…

Read more »

Woman looking through an airplane window while holding a book.
Travel Shares

Which ASX travel stock does Morgans tip to jump 60%?

A new acquisition could be a boost for this company.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Qantas shares are climbing higher again! Time to buy?

Find out where brokers think the share price will travel to next.

Read more »

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges
Dividend Investing

$10,000 invested in Air New Zealand and Qantas shares 3 years ago is now worth…

Here’s how the three-year returns from Qantas and Air New Zealand shares compare.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Travel Shares

Why I'd invest $10,000 into Qantas shares today

I think the current valuation gives investors more room to absorb some of the risks that come with owning an…

Read more »

A woman reaches her arms to the sky as a plane flies overhead at sunset.
Dividend Investing

Looking to bank the final Qantas dividend? You'd better hurry!

Here’s what you need to know to bank the final Qantas dividend.

Read more »

A smiling woman in a hat holding a ticket takes selfie inside a Qantas plane next to the window.
Dividend Investing

How many Qantas shares do I need to buy for $5,000 of passive income in FY27?

Suspended during the global pandemic, Qantas shares resumed paying dividends in 2025.

Read more »