Qantas delivered annual results showing pre-tax underlying profit of $2.06 billion for the year to 30 June, representing a significant decline attributed largely to elevated fuel expenses connected to regional geopolitical tensions. Chief Executive Vanessa Hudson indicated the company sees opportunities to increase revenue through fare adjustments, noting that passenger demand remains resilient despite macroeconomic headwinds affecting consumer spending.
The airline announced plans to accelerate retirement of its A380 aircraft fleet to 2028, five years earlier than previously scheduled, citing rising maintenance costs and operational disruptions. Simultaneously, Qantas indicated it would pursue purchases of up to 20 additional aircraft beginning in 2030, with Boeing 787 Dreamliners and Airbus A350-1000s under consideration as part of its ongoing fleet modernization strategy.
Jetstar, Qantas’s low-cost carrier, is positioned as a key profit driver and will expand its ancillary revenue streams beyond seat-based ticket pricing. The subsidiary recently introduced charges for carry-on luggage placement in overhead bins and plans additional fee-based services. Non-seat revenue currently exceeds $1 billion of Jetstar’s $6 billion annual revenue, with leadership indicating this figure will grow substantially. Median Jetstar fares have increased to approximately $150, up from nearly $100 in 2022.
Qantas’s broader financial performance reflected revenue growth of 7 percent to $25.5 billion, though offset by $610 million in additional fuel costs. The company’s loyalty program contributed significantly to earnings, growing underlying profits by 12 percent to $625 million. The airline’s share price increased more than 4 percent following the results announcement.
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