By Himanshi Akhand and Rishav Chatterjee

(Reuters) -Australia's Qantas Airways said on Friday it had lowered bonuses for its CEO and her team as the airline shoulders responsibility for a hacking incident that breached personal data of millions of customers.

Qantas CEO Vanessa Hudson will receive A$6.3 million ($4.09 million) for the year to June 30, including a short-term bonus of A$2.04 million, trimmed by A$250,000 as part of the penalty, its annual report said.

The total remuneration figure remains a fraction of the A$23.9 million received by former CEO Alan Joyce at the height of his tenure in 2018.

The data breach, disclosed in July, targeted a Qantas call centre database containing 6 million names, email addresses, phone numbers, birth dates and frequent flyer details.

It further dented public trust in the Australia's biggest air carrier, which is still repairing its image after pandemic-era decisions battered its reputation and led to a tumble in airline and brand rankings.

"While we recognise that the investigations into this incident may not be finalised for some time... it is important for both our executives and shareholders that the remuneration consequences of this incident be dealt with this year," Qantas said.

The decision came despite Qantas posting its second-highest annual profit on record and a 33% surge in its share price since the start of the year. Qantas shares closed 0.6% higher on Friday.

"I think the fact that the company did deliver a bumper profit, combined with the healthy share price performance, has given the board a bit more leeway with investors regarding remuneration than otherwise would have been the case," said Tim Waterer, market analyst at KCM Trade.

Investor scrutiny over pay has sharpened in recent years. In August 2024, Qantas slashed Joyce’s exit payout by A$9.3 million after an external review blamed him for alienating travellers, employees and shareholders.

The airline also was ordered to pay a record A$90 million fine for unlawfully sacking 1,800 ground staff during the pandemic.

The Australian Financial Review reported in late August that major pension fund investors in Qantas had been pushing the firm to take the Federal Court's assessment in that case into account while deciding on pay for senior executives.

($1 = 1.5389 Australian dollars)

(Reporting by Himanshi Akhand and Rishav Chatterjee in Bengaluru; Editing by Sumana Nandy and Jamie Freed)