Qantas is giving all its staff, who’ve been on an 18 month pay freeze, a 5% thank you bonus.
The bonus payment will be made to 28,000 Qantas employees and will cost an estimated $90 million.
CEO Alan Joyce says the bonus is recognition of the contribution made by all employees to strengthen the airline’s competitive position through the wage freeze.
“The rapid turnaround of the Qantas Group has only been made possible through the dedication and hard work of all our people,” says Joyce.
“Our ability to make these bonus payments reflects a bright future for the Qantas group, provided we stay focussed on fully delivering the transformation program that has brought us this far.”
The bonus isn’t being paid to management staff, who will be rewarded separately.
Qantas, which is in the middle of a massive restructure, is on track paying down debt, cutting costs and jobs, and increasing revenue.
About 4,000 jobs of a planned 5,000 have been cut.
The airline expects to have made $875 million of the targeted $2 billion cost cuts as at the end the 2015 financial year.
Qantas posted an underlying profit of $367 million, ahead of forecasts, for the six months to the end of December, a 245.6% improvement.
Qantas shares are a stand out on the ASX, rising to $3.27 at yesterday’s close from $1.19 a year ago.
The bonus payments will be made shortly after the release of the full year results on August 20.