Qantas delivered its annual results on Thursday, announcing pre-tax underlying profit of $2.06bn for the year ending 30 June, marking the lowest figure in four years. The decline was attributed primarily to elevated fuel costs, which the company linked to regional geopolitical tensions. Higher fuel expenses disproportionately affected the airline’s aging A380 fleet, prompting management to accelerate retirement of those aircraft to 2028 from the previously planned 2032 timeframe.
Chief Executive Vanessa Hudson indicated that Qantas would pursue additional revenue growth opportunities despite challenging economic conditions. The company is considering fare increases and plans to expand its aircraft fleet starting from 2030, with potential orders of up to 20 new planes. Models under consideration include the Airbus A350-1000 and Boeing 787 Dreamliner, though no additional orders are planned for the ultra-long-range A350 variant designated for the proposed Project Sunrise Sydney-London service.
The budget subsidiary Jetstar is central to the company’s profitability strategy. Jetstar leadership outlined plans to significantly expand ancillary fee offerings beyond the recently introduced carry-on baggage charges, which drew consumer criticism. Non-seat fees currently generate more than $1bn of Jetstar’s $6bn annual revenue, with management projecting substantial increases. Median Jetstar fares climbed to approximately $150 in the reporting period from nearly $100 in 2022.
Despite cost pressures, Qantas increased overall revenue by 7% to $25.5bn. The loyalty program contributed meaningfully, with underlying earnings rising 12% to $625m and active membership growing 6%. The company maintains expectations that its frequent flyer points business will grow at least 5% in the coming financial year and reach $800m in earnings by 2030, though recent banking sector reforms related to credit card rewards programs may affect these projections.
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