The Qantas Airways Limited (ASX: QAN) share price is under the spotlight on news that CEO Alan Joyce is bringing forward his retirement.
Qantas has come under pressure from the ACCC regarding its delay of informing customers about a large number of cancelled flights and also for selling tickets for a large number of cancelled flights. Qantas’ travel credits are also leading to a customer backlash.
Qantas share price
CEO steps down
Qantas CEO Alan Joyce has told the Qantas board he will bring forward his retirement by two months to “help the company accelerate its renewal”.
Due to this change, the ‘CEO designate’ Vanessa Hudson will assume the role of Managing Director and CEO effective 6 September 2023, which is tomorrow.
Alan Joyce said:
In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority.
The best thing I can do under these circumstances is to bring forward my retirement and hand over to Vanessa and the new management team now, knowing they will do an excellent job.
There is a lot I am proud of over my 22 years at Qantas, including the past 15 years as CEO. There have been many ups and downs, and there is clearly much work still to be done, especially to make sure we always deliver for our customers. But I leave knowing that the company is fundamentally strong and has a bright future.
The airline’s change in management positions also means that one the previously announced executive changes will also be accelerated, with Rob Marcolina to be the group’s chief financial officer, which is in-line with the current chief financial officer (Vanessa Hudson) becoming the CEO.
Qantas board response
The Qantas Chairman Richard Goyder said:
Alan has always had the best interests of Qantas front and centre, and today shows that. On behalf of the board, we sincerely thank him for his leadership through some enormous challenges and for thinking well-ahead on opportunities like ultra long-haul travel.
This transition comes at what is obviously a challenging time for Qantas and its people. We have an important job to do in restoring the public’s confidence in the kind of company we are, and that’s what the board is focused on, and what the management under Vanessa’s leadership will do.
Final thoughts on the Qantas share price
All of this comes at a pivotal time for the airline. How will it respond? Will there be more competition? Can it justify the airfares that it’s charging in light of all this public scrutiny? We’ll have to see. I’d want to stay on the sidelines for now to see what the fallout is – both what’s imposed on Qantas, and what the airline decides to do itself.
It has capitalised on the demand for travel, but the market can see that the growth of demand has largely played out. I don’t see a catalyst that could send Qantas shares a lot higher in the foreseeable future to justify the extra risk of investing right now. There are other ASX shares that don’t face large risks.
