Qantas reported an underlying profit of A$2.06 billion for the 2026 financial year, marking a 14 percent decline compared to the previous year, as the ongoing conflict in the Middle East exerted pressure on jet fuel costs. The airline attributed approximately A$420 million of the profit reduction to the war, reflecting a A$492 million increase in its fuel expenses.

In response to these financial challenges, Qantas cancelled a planned A$150 million share buyback and announced the phased retirement of its most fuel-intensive aircraft, the Airbus A380, scheduled for mid-2028. The airline is also considering outsourcing several hundred jobs to India as part of its broader efforts to manage costs and improve operational efficiency.

Chief Executive Vanessa Hudson emphasized that transformation through automation, digitization, and artificial intelligence remains a strategic priority. "With cost pressures set to continue, transformation will help us manage these increases and keep delivering for our customers and people, including through the use of technology and AI," she stated.

All of Qantas’ business segments except its Loyalty division experienced earnings declines due to increased fuel costs. The international division saw earnings drop 38 percent to A$371 million, while the domestic segment fell from A$1.05 billion to A$907 million. Jetstar recorded a smaller earnings decrease of 6 percent, finishing at A$723 million. Meanwhile, the Loyalty segment saw growth, increasing from A$556 million to A$625 million, buoyed by sustained engagement in the Frequent Flyer program.

Qantas ended the financial year with its highest reputation score in three years, achieving a rating of 74.2 on the RepTrak scale. However, the average score for the full year to June 30 stood at 69. The airline indicated that the reputation metric would be removed from bonus calculations starting with awards for 2027-29 but will still factor into bonus determinations for 2025-27 and 2026-28 periods.