Compensation InsightHow Qantas Pays
A comprehensive analysis of Qantas Airways' career levels, enterprise agreements, pilot and crew pay, equity plans (ESP, MIP, LTIP), executive compensation, and a detailed Virgin Australia comparison.
At a Glance
Career Level Hierarchy
Qantas uses an internal Job Group (JG) system. Operational roles (pilots, cabin crew, engineers, ground staff) are governed by enterprise agreements with seniority-based progression. Corporate roles follow a merit-based framework.
Executive Leadership (above Q6)
Operational Track (Seniority-Based)
Pilots, cabin crew, engineers, and ground staff progress through enterprise agreement pay scales. Pilot advancement is strictly seniority-based (check-to-rank) with fleet endorsements adding pay increments. LAMEs use a points-based system (4 points per level, 1 point/year + endorsement points).
Corporate Track (Merit-Based)
Corporate roles (IT, finance, HR, marketing, Loyalty) follow individual contracts with performance-based progression. The new Adelaide Product Innovation Centre (opening March 2026) will add 420+ tech roles. Compensation benchmarked against ASX50 peers.
Compensation by Level
Total compensation breakdown for Sydney, Australia. All values in AUD.
| Level | Title | Base (Range) | Variable % | Total Comp (Range) | Equity |
|---|---|---|---|---|---|
| Q1 | Entry / Ground Staff 0–2 yrs | A$50K – A$65K | 0% | A$56K – A$73K | ESP ($1K/yr) |
| Q2 | Experienced / Technical 1–4 yrs | A$65K – A$90K | 5% | A$73K – A$105K | ESP ($1K/yr) |
| Q3 | Senior / Specialist 3–8 yrs | A$95K – A$170K | 8% | A$107K – A$195K | ESP ($1K/yr) |
| Q4 | Manager / Captain 5–12 yrs | A$150K – A$250K | 15% | A$173K – A$300K | MIP (restricted shares) |
| Q5 | Senior Manager / Senior Captain 8–16 yrs | A$200K – A$350K | 25% | A$250K – A$460K | MIP + possible LTIP |
| Q6 | Director / General Manager 12–22 yrs | A$300K – A$550K | 40% | A$420K – A$810K | LTIP (performance rights) |
| Q7 | Group Executive 18+ yrs | A$600K – A$1.0M | 60% | A$1.5M – A$3.0M | LTIP (80–120% of FAR) |
| Q8 | CEO & Managing Director 20+ yrs | A$1.7M – A$1.7M | 70% | A$6.3M – A$6.3M | LTIP (180% of FAR) |
Source: Glassdoor, PayScale, Levels.fyi, Qantas Annual Report FY2025, Enterprise Agreements, AIPA, FAAA. Australian values include superannuation (11.5%).
Total Compensation Range by Level
Enterprise Agreements & Award Pay
Qantas operational staff are covered by multiple enterprise agreements. Pilots (AIPA/AFAP), cabin crew (FAAA), engineers (ALAEA), and ground staff (ASU) each have separate EBAs negotiated with Fair Work Commission.
Pilot Pay (Short-Haul EBA9 — Approved Feb 2025)
| Rank | Hourly | Annual Range | Note |
|---|---|---|---|
| Second Officer (Cadet) | — | A$75K–A$90K | Training phase |
| First Officer (B737 Short-Haul) | — | A$111K–A$200K | EBA9: +3% p.a. 2025–27 |
| First Officer (B787/A330) | — | A$168K–A$250K | Fleet endorsement premium |
| Captain (B737) | — | A$169K–A$350K | Check-to-rank seniority |
| Captain (B787/A330) | — | A$194K–A$420K | Wide-body premium |
| Captain (A380) | — | A$219K–A$500K+ | Highest seniority bracket |
| Training Captain | A$346.98/hr | Above base Captain | Training premium |
| Check Captain | A$365.91/hr | Above Training Captain | Senior training |
Short-Haul EBA9 Key Terms
- +9% over 3 years (3% p.a. 2025–2027)
- 0% increase for 2023–2024 (wage freeze)
- Vote: 60% in favour (March 2025)
- Guaranteed weekend off per 14-day roster
- Work 9 days per fortnight (5 days off)
- Super on 52 weeks of parental leave
- Total boost: ~25% over 5-year term (AIPA est.)
Pilot Allowances (Air Pilots Award 2020)
- Breakfast: A$34.19
- Lunch: A$38.31
- Dinner: A$65.85
- Loss of Licence Insurance: A$2,753/year
- International layover: Tax-free per diem (varies)
- Min duty credit: 60% for any duty worked
- Pay protection if flights changed from 2 days before
Cabin Crew Pay
| Role | Hourly | Annual Range | Note |
|---|---|---|---|
| Flight Attendant (Domestic) | A$42.51/hr | A$45K–A$80K | EA-based progression |
| Flight Attendant (International) | A$56.48/hr | A$55K–A$90K | Higher hourly rate |
| Customer Service Manager (Purser) | — | A$75K–A$110K | Senior cabin crew |
| UK-Based Crew (Heathrow) | — | £32K–£48K | +11–18% (Dec 2024) |
| Labour-Hire Crew (Post SJSP) | — | +A$20K/yr increase | Nov 2024 onwards |
"Same Job, Same Pay" Impact (November 2024)
~800 short-haul cabin crew moved from labour-hire to direct employment or pay parity under the Same Job Same Pay legislation. MAM crew received 32% hourly increase; Altara crew received 42.5% increase. Average annual increase: A$7,025–A$7,128 per affected worker. Total cost: A$60–65M in FY2025. This included access to Project Sunrise (A350 ultra-long-range) flights for long-haul crew.
Engineering (LAME) Pay Structure (ALAEA)
Points-based system: 4 points to advance one level. 1 point/year service + 4–5 points per new aircraft endorsement. Levels 5–17 (Levels 12–17 have quota restrictions). Level 12 (B1 LAME): ~A$80,802/year. Level 14 (B2 Avionics LAME): ~A$100,000/year. Comparable airline LAMEs (Alliance): A$144K–A$182K. ALAEA recovered several million in underpayment claims. New EBA negotiations commenced 2025.
Salary by Career Stream — Australia
Breakdown by role across Qantas's operational and corporate functions. All figures in AUD per year. Pilot pay varies significantly by aircraft type, seniority, and route (domestic vs international).
Pilots
| Role | Average | Range | P90 |
|---|---|---|---|
| Second Officer (Cadet) | A$75,000 | A$65K–A$90K | — |
| First Officer (Narrow-Body B737) | A$168,000 | A$111K–A$200K | A$250K |
| First Officer (Wide-Body B787) | A$200,000 | A$168K–A$250K | A$280K |
| Captain (Narrow-Body B737) | A$300,000 | A$169K–A$350K | A$380K |
| Captain (Wide-Body B787/A330) | A$380,000 | A$194K–A$420K | A$450K |
| Captain (A380) | A$420,000 | A$219K–A$500K+ | A$500K+ |
Cabin Crew
| Role | Average | Range | P90 |
|---|---|---|---|
| Flight Attendant (Entry) | A$50,000 | A$45K–A$55K | — |
| Flight Attendant (Experienced) | A$70,000 | A$60K–A$80K | A$90K |
| Senior Flight Attendant | A$80,000 | A$70K–A$90K | A$100K |
| Purser / Customer Service Manager | A$90,000 | A$75K–A$110K | A$110K+ |
| UK-Based Crew (Heathrow) | £38,000 | £32K–£48K | £55K |
Engineering & Maintenance
| Role | Average | Range | P90 |
|---|---|---|---|
| Aircraft Maintenance Engineer (AME) | A$73,000 | A$60K–A$91K | — |
| Licensed AME (LAME) Level 12 | A$81,000 | A$70K–A$95K | A$110K |
| LAME Level 14 (Avionics) | A$100,000 | A$86K–A$136K | A$145K |
| Mechanical Engineer | A$128,000 | A$100K–A$160K | — |
Technology (Corporate)
| Role | Average | Range | P90 |
|---|---|---|---|
| Software Engineer (Junior) | A$85,000 | A$70K–A$100K | — |
| Software Engineer | A$142,000 | A$100K–A$194K | A$246K |
| Senior Software Engineer | A$194,000 | A$160K–A$246K | A$252K |
| Solution Architect | A$210,000 | A$175K–A$245K | — |
| Data Analyst / Business Analyst | A$107,000 | A$85K–A$128K | — |
Ground Operations
| Role | Average | Range | P90 |
|---|---|---|---|
| Baggage Handler / Ramp Agent | A$50,000 | A$42K–A$63K | — |
| Customer Service Agent | A$51,000 | A$45K–A$63K | — |
| Duty Manager (Airport) | A$78,000 | A$61K–A$95K | — |
| Base Operations Manager | A$85,000 | A$70K–A$110K | — |
Management (Cross-Function)
| Role | Average | Range | P90 |
|---|---|---|---|
| Senior Manager | A$193,000 | A$165K–A$251K | — |
| General Manager | A$230,000 | A$200K–A$550K | — |
Source: Glassdoor, PayScale, Levels.fyi, Indeed, AIPA, ALAEA, Fair Work Commission, Qantas Annual Report FY2025.
Variable Reward & Bonus Payout History
Qantas uses separate STI (annual) and LTI (3-year) structures. STI weighted 30% customer, plus financial/safety/sustainability. LTI uses TSR and ROIC hurdles.
6-Year Bonus Context
Variable Pay % by Level
CEO Compensation History
| Year | CEO | Outcome | Note |
|---|---|---|---|
| FY2019 | Alan Joyce | 100% | Pre-COVID; record profitability |
| FY2020 | Alan Joyce | 0% | COVID-19; no flights; massive losses |
| FY2021 | Alan Joyce | 0% | Continued pandemic; 15K stood down |
| FY2022 | Alan Joyce | Partial | Recovery year; partial STI reinstated |
| FY2023 | Alan Joyce | Reduced 33% | ACCC / Fair Work governance issues |
| FY2024 | Vanessa Hudson | A$4.38M total | First full year as CEO (from Sep 2023) |
| FY2025 | Vanessa Hudson | A$6.31M total | +44% YoY; A$250K cyber reduction |
Reputation-Linked Bonuses (NEW FY2025)
Up to 20% of CEO Vanessa Hudson's long-term share rights now vest based on Qantas's RepTrak reputation score. Score <70: 0% of reputation-linked shares vest. Score 70–79 ("strong"): sliding scale. Score 80+ ("excellent"): 100% vest. As of FY2025, Qantas is in the "average range" (60–69), meaning these shares are currently at risk of non-vesting — a direct consequence of the ghost flights and outsourcing scandals.
Equity & Share Plans (Detailed)
Qantas introduced its first broad-based Employee Share Plan in late 2024, expanding equity participation beyond executives. The LTIP uses a dual-TSR model benchmarking against both ASX100 and global airlines.
Active Equity Plans
LTIP Vesting Conditions (3-Year Performance Period)
| Measure | Weight | Threshold (50% vest) | Target (100% vest) |
|---|---|---|---|
| Relative TSR vs ASX 100 | 40% | 50th percentile = 50% vest | 75th percentile = 100% vest |
| Relative TSR vs Global Airlines | 40% | 50th percentile = 50% vest | 75th percentile = 100% vest |
| Return on Invested Capital (ROIC) | 20% | ROIC ≥ 10% | ROIC ≥ 15%+ for full vest |
Vesting Progress (4-Year Visual)
Eligibility by Level
| Level | ESP ($1K/yr) | MIP (Restricted Shares) | LTIP (Performance Rights) |
|---|---|---|---|
| Q1–Q2 | Yes ($1K/yr) | No | No |
| Q3 | Yes ($1K/yr) | No | No |
| Q4 | No | Yes | No |
| Q5 | No | Yes | Possible (senior Q5) |
| Q6 | No | No | Yes (80–120% of FAR) |
| Q7 (Group Exec) | No | No | Yes (80–120% of FAR) |
| Q8 (CEO) | No | No | Yes (180% of FAR) |
Recent Grant Activity
Tax Treatment (Australia)
- ESP: Taxed at ESS deferred taxing point when restrictions lift (~A$1,000 as income)
- LTIP: Market value at vesting taxed as ordinary income (top rate ~47%)
- 50% CGT discount available if shares held 12+ months after ESS taxing point
- ATO Class Rulings: CR 2023/26 (LTIP), CR 2023/38 (MIP) provide safe harbour
- International crew layover allowances: Often tax-free up to ATO limits
Global Airlines Comparator Basket (LTIP TSR Benchmark)
IAG (British Airways/Iberia), Air France-KLM, Lufthansa, Singapore Airlines, ANA Holdings, Cathay Pacific. Board selects comparators annually. Qantas share price grew +140% from A$4.47 (Jul 2022) to A$10.74 (Jun 2025), exceeding 75th percentile vs. both peer groups.
ASX Insider Trades & Director Dealings
Disclosed to ASX via Appendix 3Y. Notable: Former CEO Alan Joyce sold A$16.9M in shares in June 2023 before the ghost flights scandal fully emerged.
| Date | Person | Role | Type | Shares | Price (A$) | Value |
|---|---|---|---|---|---|---|
| Aug 21, 2025 | Vanessa Hudson | CEO & MD | Acquisition | 45,477 | ESP/LTIP vesting | Equity grant |
| Aug 2025 | Vanessa Hudson | CEO & MD | Disposal | 125,000 | A$8.50 | A$1.1M |
| Mar 7, 2025 | Heather Joy Smith | Non-Exec Director | Acquisition | 8,500 | ESP/LTIP vesting | Equity grant |
| Aug 2024 | Wayne Byres | Non-Exec Director | Acquisition | 5,200 | ESP/LTIP vesting | Equity grant |
| Aug 2024 | John Mullen | Chairman | Acquisition | 12,000 | ESP/LTIP vesting | Equity grant |
| Aug 2024 | Heather Hutchinson | Non-Exec Director | Acquisition | 6,500 | ESP/LTIP vesting | Equity grant |
| Jun 2023 | Alan Joyce | Former CEO | Disposal | 2,250,000 | A$7.50 | A$16.9M |
| Sep 2023 | Alan Joyce | Former CEO | Disposal | — | ESP/LTIP vesting | A$8.4M |
Alan Joyce Share Sale Controversy (June 2023)
Former CEO Alan Joyce sold 2.25 million Qantas shares worth A$16.9M in June 2023, weeks before the ACCC ghost flights proceedings became public. He departed in September 2023. The Board subsequently forfeited 100% of his 2021–2023 LTIP shares (A$8.36M) and reduced his STI by 33%, for a total clawback of A$9.26M. His final payout for FY2024 was A$3.15M — still only A$1M less than incoming CEO Hudson received.
Share Buyback Program (FY2025)
Qantas completed A$431M in on-market share buybacks during H1 FY2025, reducing shares on issue by 4%. Total shareholder returns in FY2025: A$400M in dividends (16.5c base + 9.9c special per share). Qantas share price: A$4.47 (Jul 2022) to A$10.74 (Jun 2025) — +140% growth.
Source: ASX announcements, Qantas Annual Report FY2025, Appendix 3Y filings.
Executive Compensation — FY2025
| Year | FR | Total | Note |
|---|---|---|---|
| FY2024 | A$1.4M | A$4.38M | First full year as CEO (from Sep 2023) |
| FY2025 | A$1.7M | A$6.31M | +44% YoY; A$250K cyber reduction |
Hudson vs. Joyce: Compensation Philosophy Shift
Alan Joyce (Final Year — FY2023)
Base: A$2.17M · Target total: A$8.4M · Actual: Reduced to A$3.4M after A$9.26M clawback · 100% LTIP forfeited · 33% STI cut · Share sale of A$16.9M (Jun 2023)
Vanessa Hudson (FY2025)
Base: A$1.7M (25% below Joyce's exit) · Total: A$6.31M · 20% of LTI linked to reputation (RepTrak) · Customer outcomes weighted 30% in STI · A$250K cyber breach reduction · First female Qantas CEO
Senior Leadership Compensation
Executive compensation at Qantas uses STI + LTI. STI weighted 30% customer outcomes, 70% financial/safety/sustainability. LTI based on 3-year relative TSR (ASX100 + global airlines) and ROIC hurdles.
Board Governance & Clawback
- Board retains full discretion to reduce, forfeit, or clawback executive awards
- Demonstrated FY2023: Former CEO Joyce forfeited 100% of LTIP ($8.36M) + 33% STI cut
- FY2025: CEO Hudson's STI reduced A$250K for cyber breach accountability
- 20% of LTI now linked to brand reputation score (RepTrak metric)
- Non-Executive Directors took 33% fee reduction for governance failures
Qantas vs Virgin Australia — Pay Comparison
A detailed comparison of Australia's two major carriers. Virgin's 35% pilot pay rise (2024) challenged Qantas to respond, but Qantas maintains higher ceilings for experienced staff and superior benefits.
Pilot Pay
| Role | Qantas | Virgin Australia | Edge |
|---|---|---|---|
| First Officer (Entry) | A$111K–$168K | A$180K (from Jul 2025) | Virgin |
| First Officer (Experienced) | A$200K–$250K+ | A$180K+ | Qantas |
| Captain (Narrow-Body) | A$169K–$350K | A$277K (from Jul 2025) | Comparable |
| Captain (Wide-Body) | A$194K–$500K+ | A$277K (no wide-body) | Qantas |
| A380 Senior Captain | A$400K–$500K+ | N/A | Qantas |
Cabin Crew Pay
| Category | Qantas | Virgin Australia | Edge |
|---|---|---|---|
| Entry-level FA | A$45K–$55K | A$55K–$60K | Virgin |
| Experienced FA | A$60K–$80K | A$60K–$70K | Qantas |
| Purser / Senior | A$75K–$110K | A$75K+ | Qantas |
| Hourly Rate (Domestic) | A$42.51/hr | ~A$36–40/hr | Qantas |
| Total w/ Allowances | A$100K+ (experienced) | A$65K–$70K typical | Qantas |
Enterprise Agreement Terms
| Metric | Qantas | Virgin Australia |
|---|---|---|
| Pilot Pay Rise (Year 1) | 0% (wage freeze 2023–24) | +35% (2024) |
| Pilot Pay Rise (Annual) | +3% p.a. (2025–2027) | +3% p.a. (Years 2–3) |
| Cabin Crew Rise | Up to +30% (SJSP Nov 2024) | +15% over 3 years |
| Annual Leave (Crew) | 4 weeks + purchased leave | 6 weeks |
| Parental Leave | 18 weeks primary / 10 secondary | Not publicly disclosed |
| Super During Leave | 52 weeks (paid + unpaid) | 11.5% (legislated min) |
Overall Comparison
| Category | Qantas | Virgin Australia |
|---|---|---|
| Equity / Share Plans | ESP ($1K/yr) + MIP + LTIP | None (private company) |
| Staff Travel | Global network + Oneworld | Domestic + limited int'l |
| International Routes | London, LA, NYC, Singapore, etc. | Limited international |
| Gender Pay Gap | 32.4% median (FY2024) | 46.2% median (FY2024) |
| CEO Pay (FY2025) | A$6.3M (Vanessa Hudson) | A$49.9M exit (Jayne Hrdlicka) |
| Ownership | ASX-listed (public) | Bain Capital (private) |
Key Takeaways
- Virgin's 35% pilot pay rise in 2024 was a direct challenge to Qantas in the pilot shortage environment
- Qantas responded with 9% over 3 years (2025–27), plus better work-life balance guarantees
- Qantas wins decisively on international opportunities (A380, B787 wide-body routes), equity plans, and superannuation
- Virgin wins on entry-level pilot pay and cabin crew annual leave (6 weeks vs 4)
- Qantas's broader Oneworld travel network makes staff travel significantly more valuable
- Virgin's Jayne Hrdlicka exit package (A$49.9M) dwarfed Hudson's pay but was a one-time IPO-linked event
- Virgin's 46.2% gender pay gap (vs Qantas 32.4%) suggests wider structural inequality
Source: Fair Work Commission, AIPA, AFAP, FAAA, Glassdoor, Australian Aviation, Virgin Australia EA 2024, Qantas Short-Haul EBA9.
Benefits & Perks
Staff Travel (#1 Perk)
Leave
Training & Development
- Qantas Group Pilot Academy — training 250 pilots/year (Flight Training Adelaide)
- 20 pilot scholarships (up to $30K each; doubled for women & Indigenous Australians)
- Qantas Group Safety Academy — micro-credentials with Griffith University & RMIT
- $275M+ annual investment in training and development (5-year average)
- 48,000+ hours annual simulator training for pilots
- Fitness Passport — discounted gym/pool membership at hundreds of facilities
- ThankQ — peer recognition program with Qantas points/travel credits
- eXcel Awards — annual company-wide recognition event
- Employee Assistance Program (EAP) — free confidential counselling
- Salary packaging — vehicles, electronic devices
- Corporate discounts — hotels, car hire, travel insurance, retail partners
Crew-Specific Allowances
Pilot Meal Allowances (Air Pilots Award 2020)
Breakfast: A$34.19 · Lunch: A$38.31 · Dinner: A$65.85
Loss of Licence Insurance: A$2,753/year
Cabin Crew Layover Allowances
International layovers: tax-free per diem (varies by destination)
Example: LA layover = ~A$2,072 for 2 flights + layover
Performance & Pay Progression
Operational staff progress via enterprise agreement seniority scales. Corporate staff follow annual performance cycles. Pilots advance through check-to-rank seniority with fleet endorsements.
Promotion Timeline & Hike
Pilot Progression
LAME progression: Points-based system (4 pts/level). 1 point/year service + 4–5 points per new aircraft endorsement. Levels 5–17 with quota restrictions at 12+.
Enterprise Agreement Pay Increases
Glassdoor Ratings
Key Nuances & Insights
Free standby domestic flights, 25% off confirmed, heavily discounted international standby for family — all on Qantas plus Oneworld partners (BA, AA, Cathay). Unique to aviation. Many employees would accept lower base salary for this perk alone. The global network makes Qantas travel far more valuable than Virgin Australia's domestic-only equivalent.
Pre-COVID 'Part 1' cabin crew on A330s have better pay and conditions than post-2007 'Part 2' crew on A380s/B787s — up to 50% lower hourly rate, 20-30% more duty hours. The SJSP legislation is narrowing this gap, but structural divisions remain. Qantas even attempted to terminate the Long Haul Cabin Crew agreement entirely (first time in company history). 97% of crew voted to reject.
6,000 redundancies (29K to 21K), 15,000 stood down, plus 1,820 illegally outsourced ground staff (A$210M in fines and compensation). The global pilot shortage that followed COVID created a pay arms race — pilots poached by Emirates, Qatar, China Southern at 2x Qantas pay. Virgin's 35% first-year pay rise forced Qantas to negotiate harder.
Pilots can predict earnings trajectory (seniority lists, fleet endorsements, check-to-rank). Corporate staff face annual reviews and uncertain progression. A senior A380 Captain (A$500K+) earns more than most General Managers. This dual-culture is inherent to airlines but creates compensation philosophy tensions.
100% forfeiture of 2021-2023 LTIP (A$8.36M) + 33% STI cut. NEDs took 33% fee reduction. This was not performative — Joyce's final payout was cut to A$3.15M from an expected A$10M+. The 20% reputation-linked LTI for Hudson is a direct response to the governance failures, making Qantas one of the few companies globally with CEO pay tied to brand perception.
15M+ members, A$255M EBIT (H1 FY2025), essentially a financial services business operating inside an airline. 50% of Australians are members. The program was valued at A$2B in 2008 (>25% of total market cap). Loyalty employees likely benchmarked against financial services, not aviation, potentially earning more than operational staff at equivalent levels.
420+ tech roles (software engineers, AI specialists, UX designers, product managers) opening March 2026. Partnership with Adelaide University and AIML. These roles will be benchmarked against tech sector salaries (A$87K-A$240K+), not airline operational pay. Could create a third compensation tier alongside operational and corporate tracks.
38,000 pilot shortage in 2025, projected 80,000 by 2032. Emirates and Qatar reportedly offering 2x Australian pay, tax-free. Qantas's response: Pilot Academy (250/year), scholarships (doubled for women and Indigenous Australians), but the Short-Haul EBA9's 9% over 3 years lags Virgin's 35% first-year rise. The A380 and ultra-long-range routes remain Qantas's trump card for retention.