Qantas Airways' shares advanced 3.1% to A$9.51 on Tuesday, outpacing a 0.7% decline in the ASX 200, after the airline reported underlying profit before tax of A$2.06 billion for the year, modestly ahead of the A$2.00 billion consensus tracked by Visible Alpha.
The result marked a 14% decrease from the prior year, reflecting higher jet fuel costs that more than doubled in the second half amid the Middle East conflict. Despite the pressure, the Qantas Loyalty segment delivered 12% growth in both revenue and earnings, supporting overall performance.
The board approved a fully franked final base dividend of 19.8 cents per share. However, a previously announced A$150 million on-market share buyback will not proceed, according to the company.
Operational updates included the receipt of 17 new aircraft during the year, while Qantas retained its ranking as the world's most on-time carrier in June. The airline also accelerated plans to retire its A380 superjumbos from 2028, four years earlier than previously scheduled, and is in active discussions with Airbus and Boeing to convert 20 options into firm orders for A350s and 787s starting in 2030.
