Qantas announced its annual results on Thursday, revealing pre-tax underlying profits of $2.06bn for the year to 30 June, marking the airline’s lowest performance in four years. Chief executive Vanessa Hudson indicated the company would continue pursuing additional revenue opportunities, stating that passenger demand remained resilient despite broader cost-of-living pressures affecting consumers.
Fuel expenses emerged as a significant headwind, with costs rising an additional $610m across the airline’s network during the period. The company attributed some of these pressures to geopolitical factors, including the Iran conflict’s impact on fuel prices. The A380 fleet proved particularly vulnerable to elevated fuel costs, prompting Qantas to accelerate retirement plans for these aircraft from 2032 to 2028. The airline indicated it would purchase up to 20 new aircraft beginning in 2030, with Airbus A350-1000s and Boeing 787 Dreamliners under consideration.
Jetstar, the airline’s low-cost carrier, is positioned as a key profit driver. The carrier generates over $1bn in revenue from ancillary fees—charges for services beyond the base ticket price—out of its $6bn total annual revenue. Jetstar chief executive Stephanie Tully signaled expanded fee initiatives ahead, following recent introduction of charges for carry-on luggage storage in overhead bins. The median Jetstar fare reached approximately $150 in the reporting period, up from nearly $100 in 2022.
Overall revenue increased 7% to $25.5bn, though profitability declined due to elevated costs. The airline’s loyalty program contributed positively, generating $625m in underlying earnings with 6% growth in active members. Qantas’s share price rose more than 4% following the results announcement. The company maintained projections that its points business would earn at least 5% additional revenue in the coming financial year while targeting $800m in earnings by 2030.
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