Qantas has reported a statutory profit after tax of A$1.289 billion (US$1.555 billion) for the year ending June 30, despite facing challenges stemming from the Middle East conflict and volatile fuel prices. While the profit figure represents a 19.7% decline compared to the previous year, the airline group’s overall performance reflects resilience amid external pressures.
The airline group, which includes its low-cost carrier Jetstar, carried 8.913 million international passengers during the financial year, up from 8.379 million a year earlier. Revenue increased by 7.1% to reach A$25.5 billion. However, Qantas reported that the ongoing conflict in the Middle East and the resulting fluctuations in fuel prices inflicted a financial impact of approximately A$420 million over the period.
In a move to enhance customer experience, Qantas recently introduced a new business class suite on its Airbus A321XLR fleet, marking the debut of lie-flat beds on its narrowbody aircraft. The company is also undertaking what it calls its largest fleet renewal programme in history, having added 17 new aircraft during the last financial year with plans to receive up to 31 more in the current year.
The Qantas Frequent Flyer program expanded to nearly 19 million members, underscoring continued loyalty engagement. The airline also opened a new Emergency Procedures Training Centre in Sydney, one element of a broader A$100 million investment in training facilities for pilots and cabin crew.
Despite pressures from fuel cost volatility, Moody’s Ratings vice-president Sean Williams noted that Qantas benefits from strong financial flexibility and a commanding market position, enabling it to adjust pricing and capacity to market conditions. “While profitability declined, demand remained broadly resilient across its domestic, international, and loyalty businesses,” he said.
Qantas Chief Executive Vanessa Hudson announced the airline’s employee ownership plan, which will grant A$1,000 worth of Qantas shares to each of its 25,000 employees. Hudson acknowledged that although the fuel bill exceeded expectations by around A$610 million, the company was able to mitigate the impact through capacity adjustments and fare increases.
Earlier in the financial year, Qantas attributed fare hikes and capacity adjustments to jet fuel price volatility. The company had hedged approximately 90% of its crude oil exposure for the second half of the financial year but remained exposed to jet fuel refining margin fluctuations. It responded with a strategic shift, increasing flights to Europe, notably Paris and Rome, while reducing certain domestic services.
In May, Qantas announced its most significant investment in New Zealand to date. Since the end of the financial year, the airline completed its first Project Sunrise test flight, flying non-stop from France to Australia on a specially configured Airbus A350-1000ULR. The 19-hour flight to Melbourne demonstrated the airline’s commitment to expanding ultra-long-haul operations, with Hudson expressing confidence in growing demand for long-haul routes and premium cabins.
Qantas’ fleet includes the Airbus A380, the world’s largest passenger aircraft, which the airline plans to phase out gradually starting in 2028. Discussions with Airbus and Boeing are underway to convert approximately 20 existing aircraft options into firm orders from 2030 onward.
During the year, Qantas also closed its Jetstar Asia operations, redeploying seven aircraft to Jetstar businesses in Australia and New Zealand. The airline industry will closely watch Air New Zealand’s forthcoming annual financial results, scheduled for release soon.