Qantas announced financial results showing pre-tax underlying profit of $2.06bn for the year to 30 June, marking the airline’s lowest profitability in four years. The decline was primarily driven by elevated fuel costs, which the company attributed partly to geopolitical tensions. Chief Executive Vanessa Hudson indicated the airline would continue seeking revenue growth opportunities despite strong passenger demand persisting amid broader cost-of-living pressures.
The carrier plans to accelerate retirement of its aging A380 fleet to 2028, four years earlier than originally scheduled, citing rising maintenance expenses and operational disruptions. Qantas intends to purchase up to 20 additional aircraft from 2030 onward, with consideration being given to Airbus A350-1000s and Boeing 787 Dreamliners as replacements. The company confirmed it has no plans to order additional ultra-long haul A350s beyond those allocated for the planned Project Sunrise Sydney-London service.
Jetstar, Qantas’s low-cost subsidiary, is emerging as a key profit driver despite being unprofitable on international routes. The budget airline recently introduced charges for carry-on baggage placement in overhead compartments, a move that drew criticism from consumer advocates. Jetstar’s leadership indicated plans to expand ancillary fee offerings significantly, with non-seat revenue already exceeding $1bn of the carrier’s $6bn total annual revenue. Median Jetstar fares climbed to approximately $150 in the measured period, up considerably from nearly $100 in 2022.
Qantas generated overall revenue of $25.5bn, up 7% year-on-year, despite absorbing an additional $610m in fuel expenses across its network. The loyalty program contributed meaningfully to financial performance, increasing underlying earnings by 12% to $625m with 6% growth in active members. The company projected its frequent flyer business would generate at least 5% additional earnings in the following financial year while working toward an $800m earnings target by 2030, though anticipated regulatory changes regarding credit card surcharges present potential headwinds.
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