Qantas Airways (QAN) H1 2025 earnings summary

Executive summary

• Underlying profit before tax reached AUD 1.39 billion for H1 FY25, up 11% year-over-year, with statutory profit after tax at AUD 923 million and underlying EPS up 21% to AUD 0.63.

• Strong travel demand persisted across premium and low-cost segments, supported by an integrated portfolio, with notable increases in customer satisfaction and employee engagement.

• Fleet renewal accelerated, with 16 new aircraft delivered and AUD 1.4 billion invested, alongside a $40 million investment in training facilities.

• The board approved a fully franked base dividend of AUD 250 million and a special dividend of AUD 150 million, with $431 million in share buybacks completed.

• Significant progress in sustainability initiatives, including SAF projects, waste reduction, and community investment.

Financial highlights

• Revenue rose 9% to AUD 12,129 million, with underlying profit before tax at AUD 1.39 billion and statutory profit after tax at AUD 923 million.

• Operating margin improved to 12.4%, and operating cash flow reached AUD 2.1 billion, up 55% year-over-year.

• Net debt ended at AUD 4.1 billion, below the target range, with total liquidity exceeding AUD 11.5 billion.

• $431 million in share buybacks completed, and net assets per share increased to AUD 0.49.

• Unit cost (ex-fuel) increased 3.1% due to fleet ramp-up, legal provisions, and employee payments.

Outlook and guidance

• Group RASK for H2 FY25 expected to rise, with Domestic up 3–5% and International flat year-over-year.

• Net freight revenue forecast to increase by AUD 10–30 million in H2; Qantas Loyalty EBIT expected to grow ~10% in FY25.

• FY25 fuel cost projected at AUD 5.22 billion, with transformation initiatives targeting AUD 400 million in savings.

• Net debt expected to remain at or below the middle of the AUD 4.7–5.8 billion target range for FY25.

• Capital expenditure guidance: AUD 3.8–3.9 billion for FY25, rising to AUD 4.1–4.3 billion in FY26.