ASX-listed Qantas Airways Limited (AU:QAN) has agreed to pay AU$120 million in compensation to its ex-workers who were illegally dismissed during the COVID-19 pandemic. The airline has reached a settlement with the Transport Workers Union (TWU) and plans to compensate the former employees through a dedicated fund to be set up in early 2025. QAN stock gained 1.65% as of writing.
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Qantas Airways is Australia’s national airline and operates the country’s largest aircraft fleet.
Qantas Apologizes after Unlawful Layoffs
The settlement ends a four-year battle in federal court, with Qantas’ CEO, Vanessa Hudson, offering apologies to the affected former employees. Qantas has been hit with this bill for unlawfully dismissing 1,800 ground and baggage handlers during its 2020 outsourcing decision.
The compensation will be given directly to the former employees and will include payment for financial losses and emotional distress. The airline further stated that the final amount would include compensation to the TWU and cover the costs related to distributing the funds to the affected individuals.
Is Qantas a Good Stock to Buy?
Qantas shares have surged in 2024, driven by robust profits from domestic travel and falling crude oil prices. Year-to-date, QAN stock has gained over 70%.
Moving forward, analysts believe the share price is expected to remain stable if it maintains strong international travel performance. Additionally, analysts feel there is the potential for the return of the dividends after a gap of five years in 2025.
Earlier this month, analyst Justin Barratt from CLSA confirmed his Buy rating on the stock. Barratt also raised his price target from AU$8.8 to AU$10.7, predicting a growth rate of 16.4%.
What is Qantas Target Price?
According to TipRanks, QAN stock has received a Moderate Buy rating backed by eight Buy and three Hold recommendations. The Qantas share price prediction is AU$9.37, which is 3% above the current trading level.
