Qantas has announced it will pay up to $90 million in bonuses to thousands of staff, but only those who agree to an 18-month wages freeze.
The airline's chief executive Alan Joyce said the payments were recognition of the contribution made by staff as Qantas recovered from last year's $2.8 billion full-year loss.
Qantas returned to profit earlier in the year with a first-half profit of more than $200 million, with expectations of an even stronger full-year result that will be released shortly before the bonuses are paid in August.
"The rapid turnaround of the Qantas Group has only been made possible through the dedication and hard work of all our people," Joyce said in a statement to the ASX on the bonuses.
"Our ability to make these bonus payments reflects a bright future for the Qantas Group, provided we stay focused on delivering the transformation program that has brought us this far."
The payments will be equivalent to 5 per cent of each employee's annual salary, which is the average payout to total just over $3,200.
But there is also a significant catch. While up to 28,000 staff could be eligible, only those Qantas and Jetstar employees who have agreed to the wages freeze will be paid.
Unlike an enterprise agreement pay rise, the bonuses would only be one-off payments.
The Transport Workers Union (TWU) has reacted angrily to the bonus offer, describing it as a cynical ploy that will undermine the living standards of Qantas employees.
TWU National Secretary Tony Sheldon said the payouts were at odds with the jobs cuts at Qantas, and the replacement of full-time positions with part-time workers.
"The company has used the money that they've taken off the employees to turn around and take back to them and say they're Father Christmas," he said.
"Scrooge is alive and kicking. To now have one in five employees working at Qantas living below the poverty line is outrageous, said Sheldon.