Qantas Airways reported an underlying pretax profit of A$2.06 billion for the fiscal year, matching market estimates and down from A$2.39 billion a year earlier, as strong travel demand offset rising costs. The airline’s shares climbed 2.8% to A$9.48 in early trading.
Fuel expenses surged by A$610 million after hedging, while the Middle East conflict added a net A$420 million in costs, primarily through higher jet fuel prices. International operations, particularly on legacy Airbus A330 and A380 fleets, also faced elevated expenses.
Travel demand remained resilient, supporting a 3% increase in capacity. Qantas Loyalty, the airline’s non-airline division, delivered double-digit earnings growth. The company declared a final dividend of 19.8 Australian cents per share, bringing the full-year payout to 39.6 cents per share.
Fleet plans include the retirement of Airbus A380 superjumbos starting in 2028, with 10 units still in service as of June 30, 2026. Qantas added 17 new aircraft during the year and expects up to 31 deliveries in the next 12 months, including 24 for its mainline operations and the first of its Project Sunrise A350-1000ULR aircraft for ultra-long-haul routes.
