Qantas CEO Alan Joyce leaves airline two months early

Mr Joyce has announced his retirement has been brought forward to September 6 with incoming chief executive Vanessa Hudson to take over.

"In the last few weeks, the focus on Qantas and events of the past make it clear to me that the company needs to move ahead with its renewal as a priority," Mr Joyce said.

"The best thing I can do under these circumstances is to bring forward my retirement and hand over to Vanessa and the new management team now, knowing they will do an excellent job."

It follows a tumultuous period for the airline with the ACCC launching court action alleging Qantas sold tickets to more than 8000 flights that were already cancelled.

A class action was also brought against the airline over almost $500 million in COVID-19 flight credits, with Qantas last week ditching its end of year deadline.

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Qantas chairman Richard Goyder said the transition in leadership came at a challenging time for the airline.

"We have an important job to do in restoring the public's confidence in the kind of company we are, and that's what the Board is focused on, and what the management under Vanessa's leadership will do," he said.

Mr Joyce had announced his retirement from Qantas in May after 15 years in his role as chief executive and managing director, and was due to depart in November.

Shareholders will formally vote on the appointment of Vanessa Hudson as Managing Director at Qantas' Annual General Meeting in November.

The national secretary of the Transport Workers' Union Michael Kaine told ABC News Breakfast the move allowed Qantas to "turn over a new leaf".

"The Australian people have caught up with the type of Qantas that Alan Joyce was running and we know the consequences of it," he said.

"We have got a decimated workforce, we've got service standards through the force and airfares through the roof, and clearly the board, one of the few good decisions that we can see that they have made recently said to Alan Joyce, 'Your time is up'.

"It's in everyone's interest that we rebuild the Spirit of Australia in a positive way."

Qantas Group pilots' union, the Australian and International Pilots Association, said it hoped the announcement would be a "circuit breaker" allowing the airline to move forward.

"We look forward to working constructively with incoming CEO Vanessa Hudson to rebuild our iconic airline into the respected and trusted brand that has made all Australians proud," AIPA president and Qantas pilot Tony Lucas said.

"There is much work to be done, however we trust that Ms Hudson recognises the power of respecting and valuing all Qantas staff and how that can play a significant role in the renewal of the airline."

Labor Senator and former TWU national secretary Tony Sheldon has called for the Qantas board and shareholders to "knock Mr Joyce's bonus off".

"If the Board allows Mr Joyce to walk away with $24 million after illegally sacking 1700 people, gouging customers and while subject to an ACCC prosecution, it will be the swindle of the century," he said in a statement.