Qantas has been handed the largest industrial relations fine in Australian history after unlawfully sacking 1,820 ground staff during the Covid-19 pandemic.

The Federal Court ruled on Monday that the airline must pay A$90 million (US$59 million) in penalties, following its 2021 finding that Qantas had breached the country’s industrial relations laws by outsourcing baggage handling and cleaning roles at the height of the crisis.

Justice Michael Lee, who delivered the ruling, criticised the airline for its lack of genuine remorse throughout the lengthy legal process. While Qantas had apologised publicly, the judge described it as “the wrong kind of sorry”, pointing to statements made after the original ruling, attempts to block compensation, and the failure of chief executive Vanessa Hudson to appear in court.

“It goes too far to conclude that Qantas is simply like Tartuffe, pleading virtue only when cornered and feigning contrition while harbouring no genuine regret,” Justice Lee said, referencing the 17th-century French play by Molière. He added that while some company leaders may now hold “genuine regrets,” these were more likely tied to reputational damage than true accountability.

The court imposed a penalty just shy of the maximum possible A$121 million. Of the fine, A$50 million will be paid to the Transport Workers’ Union (TWU), which brought the case against the airline. The destination of the remaining A$40 million will be decided in a later hearing, with the union calling for the money to be distributed to the affected workers.

The penalty is separate from a A$120 million compensation package that Qantas has already agreed to pay to the employees who lost their jobs.

Qantas initially tried to overturn the 2021 ruling but failed. The outsourcing decision, made during the pandemic’s travel downturn, was widely condemned and contributed to the airline’s later operational chaos when travel demand rebounded. The episode has also triggered a broader cultural overhaul at the company.

Vanessa Hudson, who became chief executive in 2023, acknowledged the damage in a statement following Monday’s judgment. “The decision to outsource five years ago, particularly during such an uncertain time, caused genuine hardship for many of our former team and their families,” she said. “The impact was felt not only by those who lost their jobs, but by our entire workforce.”

Michael Kaine, TWU national secretary, described the fine as a major victory for workers. “They weren’t just sacked, they were told by Qantas that they were delusional for questioning it,” he said. “This ruthless, self-interested and illegal calculation to kick them to the kerb has rightfully merited the largest ever penalty of its kind.”

Kaine added that the ruling should serve as a warning to corporate Australia. “What’s important is that this never happens to any Australian worker again,” he said.