Qantas Airways ground staff are seen on the tarmac near planes at the domestic terminal of Sydney International Airport in Sydney, Australia on Jan. 14, 2026. David Gray/ AFP via Getty Images
Australian flag air carrier Qantas has reported a 13.8 percent fall in its underlying profit to $2.06 billion amid higher fuel prices and war in the Middle East.
The company’s profit after tax fell 19.7 percent to $1.29 billion with higher jet fuel costs linked to the conflict cutting about $420 million from earnings.
Chief Executive Vanessa Hudson said Qantas came through with a “strong result” despite the challenges.
“The final four months of the year saw business and consumer confidence fall as the conflict and economic headwinds created uncertainty, and some large corporates and government responded by managing their costs more tightly, reducing demand for travel,” she said in the company’s results (pdf).
“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 $420 million, despite a $610 million increase in our fuel bill.”
Domestic flying still delivered $1.44 billion in earnings for the company despite the higher fuel bill, up 5 percent. Meanwhile, the company’s low-cost brand, Jetstar, delivered a 15 percent boost in earnings.
Internationally, Qantas revenue spiked 8 percent with Jetstar soared 14 percent as both added seats.
The shift towards to Europe, with destinations like London, Paris and Rome, appears to have paid dividends with 90 percent of seats sold and premium cabin capacity expanded.
Fleet Renewal
Seventeen new aircraft arrived during the year, with up to 31 more expected soon with the first ultra-long-range Project Sunrise A350 due in April, paving the way for non-stop Sydney to London, or Sydney to New York City flights.
The fleet refresh means Qantas can start retiring its A380 superjumbos from 2028.
Looking ahead, the airline expects stronger yields in the first half of the new financial year.
New direct flights to Las Vegas, a reopened Sydney international business lounge, Jetstar 787 upgrades, and wider Wi-Fi rollout are among the customer improvements planned.
Shareholders will get a fully franked final dividend of 19.8 cents a share, though a planned share buy-back was cancelled.
Meanwhile, about 25,000 non-executive staff will again receive $1,000 in Qantas shares.
Jetstar Airport Workers Planning Industrial Action
Meanwhile, Jetstar airport workers will vote next week on possible industrial action after the Fair Work Commission approved a union ballot.
The Australian Services Union said Jetstar’s 3 percent pay offer is the bare minimum for its lowest-paid staff despite the Qantas Group’s $2.06 billion profit and $700 million returned to shareholders.
“Our members just want a fair offer that actually reflects the profit they’re helping to generate and Jetstar needs to come to the table to make that a reality today,” ASU Assistant National Secretary Scott Cowen said in a statement sent to The Epoch Times.
