Qantas delivered annual results showing pre-tax underlying profit of $2.06 billion for the year ending June 30, marking the airline’s weakest performance in four years. The decline was primarily driven by elevated fuel costs, which contributed an additional $610 million in expenses across the carrier’s network. Chief executive Vanessa Hudson indicated the company would pursue further revenue opportunities, stating that management would continue to maximize both pricing and earnings where passenger demand supported such increases.
The impact of fuel price volatility was particularly acute for Qantas’s older A380 aircraft, which consume more fuel than newer models. In response, the company accelerated its fleet retirement plan, moving up the withdrawal of A380s from 2032 to 2028. Qantas indicated it would purchase up to 20 additional aircraft beginning in 2030, with Boeing 787 Dreamliners and Airbus A350-1000s under consideration as replacements for the long-haul fleet.
Qantas’s budget subsidiary Jetstar emerged as a key driver of profitability during the period. Non-seat ancillary fees including baggage charges, seat selection, and food services generated over $1 billion of Jetstar’s $6 billion in annual revenue. Jetstar chief executive Stephanie Tully indicated the carrier had recently launched new fee initiatives, including charges for overhead locker access, and signaled additional ancillary revenue products were in development. The median Jetstar fare rose to approximately $150 in the period, up from near $100 levels in 2022.
Despite profit pressures, Qantas increased overall revenue by 7 percent to $25.5 billion over the 12-month period. The loyalty program contributed meaningfully to results, increasing underlying earnings by 12 percent to $625 million, with active membership growing 6 percent. The company projected the frequent flyer points program would achieve at least 5 percent earnings growth in the coming financial year and reach $800 million in earnings by 2030, though changes to bank credit card rewards schemes ahead of forthcoming surcharge restrictions could affect the business.
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