Key facts
- Qantas reported a 13.8% decrease in full-year pre-tax underlying profit.
- The airline's profit before tax for the year ended June 30 was A$2.06 billion.
- This result surpassed the Visible Alpha consensus estimate of A$2.00 billion.
- Higher jet fuel prices due to the Middle East conflict negatively impacted profits.
- Increased fares helped to offset some of the cost pressures.
- For H1 FY26, Qantas Group's underlying PBT was $1.46 billion, a 5% year-on-year increase.
Qantas Airways reported a 13.8% decrease in its full-year pre-tax underlying profit, reaching A$2.06 billion for the year ended June 30, compared to A$2.39 billion in the prior year. This result slightly surpassed the Visible Alpha consensus estimate of A$2.00 billion.
The decline in profit was primarily attributed to surging jet fuel prices, exacerbated by the Middle East conflict, which outweighed gains from higher fares. The airline's financial performance for the first half of fiscal year 2026 showed underlying profit before tax of $1.46 billion, a 5% increase year-on-year, with earnings per share at $0.68, up 7%.
Qantas' Board approved an interim shareholder distribution of up to $450 million, including a $300 million base dividend and a $150 million on-market buyback. Net debt stood at $5.6 billion, at the lower end of the fiscal year 2026 target range. Group capacity increased by 4%, with revenue per available seat kilometer (RASK) rising by 3%.
The fleet renewal program, particularly Jetstar's A321LR fleet, has delivered significant results, contributing to earnings uplift through improved fuel efficiency and reduced maintenance costs. Group Domestic EBIT exceeded $1 billion with an 18% margin, while Jetstar Domestic earnings surged by 38% with a 22% EBIT margin, driven by strong demand in business and premium leisure travel. Group International EBIT was impacted by cost escalations, including higher engineering and operational wages, though Jetstar International earnings grew by 9%.
The Loyalty division reported EBIT of $286 million, up 12%, with its Frequent Flyer program now exceeding 18 million members. Qantas has seen improvements in operational performance, with its Net Promoter Score (NPS) increasing by 5 points and on-time performance reaching 70%. For the second half of fiscal year 2026, Group RASK is expected to increase by approximately 3%.