Qantas reports 'strong travel demand' across domestic and intl driving USD933m profit after tax

Qantas Group reported (27-Aug-2026) an underlying profit before tax of AUD2.1 billion (USD1.5 billion) for the 12 months ended 30-Jun-2026, a decline of AUD330 million (USD237 million) year-on-year. Statutory profit after tax declined AUD316 million (USD226.9 million) to AUD1.3 billion (USD933.6 million), with the net impact of conflict in the Middle East rising to AUD420 million (USD301.6 million). Additional highlights include:

• Group Domestic:
  
  • Qantas Airways and Jetstar Airways continued to see "strong travel demand and strong revenue across the domestic market for the majority" of FY2026, with Group Domestic recording AUD1.4 billion (USD1 billion) in underlying EBIT despite "impact of significantly higher fuel costs";
  • Qantas Domestic revenue increased 5%, supported by a 3% increase in capacity;
  • Fleet renewal accelerated with the A321XLR entering into service and seven of the aircraft in operation. The A220 fleet grew to 12 aircraft. The new aircraft, alongside almost all of Qantas' existing Boeing 737s, have been fitted with Qantas Economy Plus seating, which will be introduced to the A330 in Sep-2026. QantasLink is also refurbishing its existing A320 and A319 fleets, with mid-life Embraer E190 aircraft arriving "in the coming months" to replace the Fokker F100 fleet;
  • Jetstar Domestic increased earnings by 15%, supported by an 11% increase in revenue from a 4% increase in capacity. "Record" passenger numbers helped drive "strong load factors, ancillary revenue and yield". The fleet grew to 25 A321LRs and five A320neo aircraft through Jun-2026, with these next generation aircraft now making up almost half of narrowbody fleet capacity;
• Group International:
  
  • Strong demand for international travel continued, with Qantas and Jetstar adding capacity and increasing unit revenue. "Significantly" higher fuel costs saw Group international underlying EBIT decline to AUD650 million (USD466.8 million);
  • Qantas International revenue increased 8%, supported by a 7% increase in capacity. Demand for services to Europe surged, with the carrier adding nearly 16,000 seats in Q4FY2026 through redeploying aircraft from other parts of its network. The result was underpinned by "strong premium cabin demand" and the performance of the 787 fleet on long haul routes which "continues to provide confidence ahead of the launch of Project Sunrise". Premium cabin revenue increased 15% - twice the rate of economy;
  • Jetstar International "continued to perform strongly" with 11% capacity growth driving "record passenger numbers" and increasing revenue by 14%. The arrival of additional narrowbody aircraft enabled the launch of nine new international routes and the redeployment of 787s, including on the carrier's recently launched Melbourne Tullamarine-Colombo service;
  • Jetstar Asia ceased operations in Jul-2025, with the Group to also divest its minority shareholding in Jetstar Japan. The transaction is expected to be completed by the end of Jun-2027;
  • Fleet renewal continues with the first A350-1000ULR scheduled to arrive in Apr-2027 and the first nonstop Sydney-London flight to operate in Oct-2027. In addition to 12 Project Sunrise aircraft, the Group has firm orders for 12 A350s and 12 787s. The first of the additional 787s are scheduled to begin arriving in FY2028 with the next evolution of the airline's business seats including more space, sliding privacy doors and larger entertainment screens;
  • The Group confirmed discussions with Airbus and Boeing regarding converting approximately 20 of its existing purchase right options to firm orders from 2030. The A380 will "now be gradually phased out of the fleet from calendar year 2028".

Qantas Group CEO Vanessa Hudson stated: "In the first half, Qantas and Jetstar were both performing strongly, with demand growing across the domestic and international networks. Our new aircraft allowed us to add capacity and open new routes, which helped us to increase revenue", continuing: "Qantas continued to see growth at the premium end of the market while Jetstar went from strength to strength and continued to deliver value... [highlighting] the benefits of our dual brand strategy". Ms Hudson added: "The final four months of the year saw business and consumer confidence fall as the conflict and economic headwinds created uncertainty... In response to the surge in fuel prices, we quickly adjusted fares and capacity and redeployed aircraft to give customers more options to fly to Europe. These actions, along with other mitigations, limited the net impact on earnings to AUD420 million, despite a AUD610 million (USD438.1 million) increase in our fuel bill". [more - original PR]