Qantas announced its annual financial results, revealing pre-tax underlying profit of $2.06bn for the year ending 30 June, marking the lowest level in four years. The airline attributed the decline to higher fuel costs linked to geopolitical tensions in the Middle East. Chief Executive Vanessa Hudson indicated the company would pursue additional revenue opportunities through fare increases and expanded add-on services, citing robust passenger demand despite economic pressures facing consumers.
The company plans to accelerate the retirement of its older A380 aircraft fleet to 2028, ahead of the previously scheduled 2032 timeline, to manage rising maintenance expenses and operational disruptions. Qantas intends to purchase up to 20 additional aircraft from 2030 onward as part of its fleet modernization program, with consideration given to Airbus A350-1000s and Boeing 787 Dreamliners. The carrier will not pursue additional orders of the ultra-long range A350 variants beyond those needed for its planned Sydney-London route.
Jetstar, the company’s low-cost subsidiary, remains a significant profit driver despite challenging market conditions. The budget carrier recently introduced fees for overhead locker storage of carry-on luggage and plans further ancillary charges to keep base fares competitive. Non-seat fees, including baggage, seat selection, and other services, generated over $1bn of Jetstar’s $6bn annual revenue. Jetstar’s chief executive stated the company has a substantial pipeline of additional ancillary initiatives planned for implementation.
Overall company revenue increased 7% to $25.5bn during the period, though this growth was offset by an additional $610m in fuel expenses across the network. The loyalty program contributed significantly to profitability, increasing underlying earnings by 12% to $625m with a 6% expansion in active members. Qantas maintains projections that the loyalty business will generate $800m in earnings by 2030 and achieve minimum 5% annual growth in the coming financial year.
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