Qantas Airways (QAN) H1 2025 earnings summary

Executive summary

• Underlying Profit Before Tax reached $1.39 billion (up 11%) and Statutory Profit After Tax was $923 million, with EPS up to 63 cents, reflecting strong travel demand and capacity growth.

• Robust operating cash flow of $2.1 billion supported by strong performance across all business segments and continued investment in fleet, people, and customer experience.

• Net debt at $4.1 billion, below the target range, with total liquidity exceeding $11.5 billion and $431 million in share buy-backs completed.

• Fully franked base dividend of $250 million and special dividend of $150 million declared, marking the first shareholder dividends since FY19.

• Customer satisfaction and employee engagement improved, with notable increases in Net Promoter Scores and a thank-you payment to 27,000 employees.

Financial highlights

• Revenue rose 9% to $12,129 million; Underlying Profit Before Tax increased to $1,385 million; Statutory Profit After Tax up to $923 million.

• Operating margin reached 12.4%, with operating cash flow at $2,073 million and net free cash flow of $677 million.

• Net debt ended at $4.1 billion, below the $4.7–$5.8 billion target range; liquidity exceeds $11.5 billion.

• Underlying EPS increased to 63 cents; Group seat factor at 85.5%, up 1.9 points.

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

Outlook and guidance

• Strong travel demand expected to continue into 2H25; 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 $10–30 million in H2.

• FY25 fuel cost projected at $5.22 billion; capital expenditure guidance of $3.8–$3.9 billion for FY25, rising to $4.1–$4.3 billion in FY26.

• Qantas Loyalty on track for ~10% underlying earnings growth in FY25; capacity guidance: Group International up 12% and Group Domestic up 2% in 2H25.

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