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Schools may have been on summer break, but it’s been a busy period for Qantas.

Qantas has entered 2026 with strong sales, driven by major fare promotions and
solid underlying travel demand. However, costs are rising due to higher labour,
airport and supplier charges, increased flying, additional maintenance on an ageing
transitioning fleet, renewed investment in customer experience and decarbonisation,
and ongoing fuel price volatility.

Qantas is targeting around $400 million in cost savings in FY2026, with CEO
Vanessa Hudson flagging the year as a major scaling phase for artificial intelligence
across the business to drive efficiencies and enhance the customer experience. The
airline is exploring AI for predictive maintenance, flight planning and HR, and has
already trialled AI-enabled cameras at Brisbane Airport to monitor aircraft turnaround
tasks and identify causes of delays. Qantas has also announced a Product
Innovation Centre in Adelaide focused on digital systems and AI tools to better
support customers during travel disruptions.

In December 2025, Qantas employees covered by the Australian Services Union
approved a new enterprise agreement, delivering a minimum 5% pay rise in the first
year, cumulative increases of around 14% through to 2028, and backpay to 1 July
2025. The agreement also includes roster-change compensation and stronger job-
security protections, following a period of wage freezes, outsourcing disputes and
Fair Work Commission intervention.

For engineers, their EBA expired at the end of 2025 and bargaining for a new
agreement has commenced, with unions flagging a tough round focused on pay,
staffing and job security. Previous engineer agreements have typically combined
modest wage increases with provisions on rest, training and safety, with past
disputes escalating to Fair Work determinations.

Separately, in late 2025 Qantas confirmed a senior leadership restructure, with
multiple executives and corporate roles exiting the Group. Reports indicated up to
400 corporate job losses as part of cost-cutting measures and a shift toward greater
use of technology and AI.

In Airline Ratings’ 2026 “Top 25 Safest Full-Service Airlines,” Qantas ranked third,
behind Etihad and Cathay Pacific and ahead of carriers including Qatar Airways,
Emirates and Air New Zealand. However, the Australian Transport Safety Bureau
(ATSB) has launched an investigation after a maintenance work light was found
inside the wing of a Qantas A380 that had already completed long-haul flights.
Qantas says safety was not compromised and is reviewing internal procedures. The
airline has also returned its final stored A380 to service, restoring its full fleet.Qantas plane

Source: Qantas front line staff win significant pay rise by Jake Nelson Australian
Aviation Dec 11 th ; Safety investigation launched after work light found in a Qantas
A380 wing by Robyn Ironside The Australian 29 Jan 2026.