👉 Background: Qantas has faced a lot of criticism since the pandemic:
These acts ultimately led to ex-CEO Alan Joyce stepping down and being replaced by Vanessa Hudson.
👉 What happened: Now, the new CEO has just announced Qantas's its latest half-year profits of $1.25 billion, which is a 13% decrease from last year. This is due to a reduction in airfare prices and a major investment in customer service.
👉 What else: And while its share price dropped 6%, its CEO has managed to turn this news into a feel-good story.
💡When a company has developed a reputation for price-gouging, a decrease in profit can be a way to improve customer relations. Price-gouging is when companies charge higher than reasonable prices for their own benefit.
💡Last year, there were concerns that Qantas' growth came at an unreasonable cost to customers.
💡So ironically, Qantas' loss has been seen as one that Qantas needed to win back the trust of customers.
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