Qantas Plans 850 Job Cuts as Travel Pressures Mount
Qantas plans to cut 850 corporate jobs and move much of the work to India under a deal with Accenture. The airline says the changes will modernize operations and expand its use of AI, while Australian tourism also faces higher costs and weaker domestic travel demand.
Qantas plans to cut 850 corporate jobs in Australia and have much of the work delivered from India, a shift that comes as the airline and the wider tourism sector face rising costs and softer domestic travel demand.
The way travel changing it's is also reflected in fewer Australians planning holidays and a decline in domestic overnight trips.
The affected jobs are mostly back-office roles in Sydney, including finance, human resources and marketing. Qantas is entering a deal with technology and consulting firm Accenture.
Chief Executive Vanessa Hudson said the changes would modernize the airline, simplify its operations and speed up the use of artificial intelligence (AI).
The Australian Services Union disputed the company’s explanation, accusing Qantas of using AI to justify moving Australian jobs offshore.
Qantas faces pressure from higher fuel costs, wages, insurance premiums and airport charges. Staff shortages also continue to affect parts of the tourism sector.
Fuel costs have risen amid disruption to global oil supplies during the war in Iran, according to the account of the airline’s operating pressures.
Household budgets are also influencing travel choices. Research by the Tourism and Transport Forum found 54 per cent of Australians planned a mid-year break in 2026, compared with 74 per cent in 2024.
Tourism Research Australia figures showed domestic overnight trips fell 2 per cent in the June quarter compared with the same period a year earlier. The number of nights spent away also declined.
Qantas reported almost $1.3 billion in full-year profits in August, down 19.7 per cent from the previous year.
The airline has cancelled its Adelaide–Mount Gambier route indefinitely and plans to suspend Melbourne–Alice Springs flights from next week. The suspension would leave no direct flights between the two cities.
Qantas has also temporarily suspended flights between Melbourne and Hamilton Island and Coffs Harbour, citing high fuel costs and weak demand.
The airline told a Senate inquiry last year that it operated 102 routes to 62 regional towns and centers, carrying more than 9 million passengers to and from regional and remote Australia each year.
Regional connections can bring visitors to hotels, restaurants, tour operators and local attractions. When flights disappear, become less frequent or cost more, destinations can become harder to reach.
The collapse of Bonza in 2024 removed dozens of routes, including 30 regional connections with no other airline serving them, the Australian Competition and Consumer Commission said. Regional airline Rex also entered administration that year after expanding into capital city routes.
