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Qantas records $1.48 billion underlying annual profit, announce Airbus A380 fleet earlier retirement
August 27th 2026
Qantas Airways reported underlying profit before tax of A$2.06 billion ($1.48 billion) for the year ended June 30, 14% lower than a year earlier. Read More » The fall was the result of the Middle East conflict, elevating the price of fuel during the second half of the year. “This has been another year of progress, with customer satisfaction at its highest in a decade and world-leading operational performance, even as the aviation industry faced record-high fuel costs and disruption from the conflict in the Middle East. We came through it with a strong result, which is what allows us to continue investing in the largest fleet renewal in our history and deliver more for our customers, people and shareholders,” Qantas Group CEO Vanessa Hudson commented. “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. 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,” she added.
The Group said it is in discussion with Airbus and Boeing regarding converting around 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. The next-generation aircraft replacing it can fly further and will be able to operate all routes on the airline’s current international network and open new ones. This fleet renewal is expected to significantly improve Qantas International’s earnings performance and reduce operational complexity, with its operating margin expected to increase to 10-12% from FY32,” the Group announced.
Qantas International revenue grew 8%, while capacity 7%. Jetstar International revenue increased 14%, with capacity increasing 11%. “Strong demand for international travel continued, with Qantas and Jetstar adding capacity and increasing unit revenue, though significantly higher fuel costs saw Group International Underlying EBIT decline to $650 million,” said the Group.
Qantas Domestic revenue increased 5%, supported by a 3% increase in capacity. Jetstar Domestic increased earnings by 15%, supported by an 11% increase in revenue, driven by a 4% increase in capacity over the year. Record passenger numbers helped drive strong load factors, ancillary revenue and yield, the Group reported, adding that Group Domestic delivered $1.44 billion in Underlying EBIT, despite the impact of significantly higher fuel costs.
Qantas revealed a new Business Suite for its Airbus A321XLR fleet, bringing a lie-flat bed to a Qantas single-aisle aircraft for the first time, as part of the largest fleet renewal in the airline’s history. The first of the 16 A321XLRs configured with the new Business Suites is scheduled to arrive in 2028. Qantas has also unveiled an evolved Business Suite for the additional Boeing 787-9 Dreamliners on order, with the 42 Suites on each aircraft to feature a sliding privacy door for the first time on the Qantas Dreamliner.
