Qantas will formally apologise for the carrier’s chaotic recent performance and extend an olive branch to millions of Australian customers this week, offering them $50 flight discounts, additional lounge invitations and improving reward seat availability.

The mea culpa from chief executive Alan Joyce will be issued to frequent flyers after months of disarray at the nation’s airports, with the airline beset by delayed and cancelled flights, snaking queues and lost baggage.

The chaos has been blamed on rebounding demand for overseas travel colliding with COVID-related staff shortages, a shrinking labour market pool and prolonged bouts of wet weather.

In a video message to Qantas frequent flyers, Joyce said the airline’s recent performance was not good enough despite having “good reasons” for the mishaps including cancelled flights, delays and increased instances of lost luggage.

“On behalf of the national carrier, I want to apologise and assure you that we’re working hard to get back to our best,” he said.

Australian and New Zealand frequent flyer members will be offered $50 towards a return Qantas flight and an invitation to visit a Qantas lounge.

Silver frequent flyer members will have their status extended for 12 months and receive an invitation to the Qantas Club or an international business lounge. Gold members will be invited to visit one of the airline’s domestic business lounges.

Platinum and platinum one members have also been promised between 15,000 and 30,000 Qantas points.

The airline has also extended its “classic reward” seat availability program, where seats are booked using Qantas points, through to June 30, 2023 and added additional seats across international and domestic flights on Sunday. One in every 11 passengers carried by the airline uses a reward seat.