Qantas profit drops 20% as fuel costs surge 14%

By the Editorial Team · Sunday, August 30, 2026

Qantas reported a 19.7 percent drop in net profit to Aus$1.29 billion for the fiscal year ending June 2026, primarily due to a 14.4 percent increase in jet fuel prices driven by Middle East geopolitical tensions. Despite the profit decline, the airline plans to modernize its fleet with up to 31 new aircraft deliveries and implement fuel price hedging to manage ongoing cost volatility.

Australian airline Qantas reported a 19.7 percent decline in net profit for the financial year ending June 30, 2026, citing a sharp rise in fuel costs influenced by geopolitical tensions in the Middle East. The carrier’s net profit fell to Aus$1.29 billion (approximately $930 million), while revenue increased 7.1 percent to Aus$25.5 billion.

Qantas attributed the profit decline primarily to a 14.4 percent increase in jet fuel prices, which the airline expects to remain elevated through the second half of the calendar year. The rise in fuel costs followed the outbreak of conflict in the Middle East, which disrupted global energy markets and consumer confidence.

Vanessa Hudson, Qantas Group chief executive, noted that economic uncertainty and corporate cost-cutting measures dampened travel demand toward the end of the financial year. “The conflict and economic headwinds created uncertainty, and some large corporates and Government responded by managing their costs more tightly, reducing demand to travel,” she said.

Despite these challenges, Qantas highlighted strong underlying travel demand, supported by both business and leisure customers prioritizing trips. The airline responded to increased fuel prices by adjusting airfares and flight capacity and redeploying aircraft to enhance options for passengers flying to Europe.

To mitigate ongoing fuel price volatility, Qantas plans to implement hedging strategies for crude oil prices during the July-December period. The carrier also emphasized ongoing investments in its fleet, adding 17 new aircraft over the past financial year and expecting up to 31 additional deliveries in the year ahead.

Hudson indicated that these investments would enable Qantas to phase out its double-decker A380 planes starting in 2028, signaling a modernization of the airline’s long-haul fleet. The company described its financial performance as resilient in the face of external shocks.

As fuel costs and geopolitical uncertainties continue to influence the aviation sector, Qantas’s focus will remain on balancing cost management with meeting sustained passenger demand.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.