Qantas Airways (QAN) H1 2026 earnings summary

Executive summary

• Underlying profit before tax rose 5% year-over-year to AUD 1,456 million, with statutory profit after tax at AUD 925 million and EPS up to 0.68; strong operating cash flow of AUD 1.8 billion was reported.

• Interim shareholder distribution of up to AUD 450 million announced, including a fully franked base dividend of AUD 300 million and a share buyback of up to AUD 150 million.

• Fleet renewal accelerated with AUD 1.8 billion invested and up to 18 aircraft added, supporting operational and financial improvements.

• Customer satisfaction improved, with Net Promoter Scores rising and on-time performance leading the domestic market.

• Workforce expanded by up to 4%, with ongoing investment in staff development and new crew bases.

Financial highlights

• Revenue for 1H26 was AUD 12,896 million, up 6% year-over-year; underlying profit before tax reached AUD 1.46 billion, up 5%; statutory profit after tax was AUD 925 million.

• Operating margin was 12.3%; net debt at AUD 5.6 billion, at the bottom of the FY26 target range.

• Net capital expenditure was AUD 1.8 billion; AUD 400 million in dividends returned to shareholders.

• Total unit revenue (RASK) up 3% to 11.67c/ASK; total unit cost up just over 2%.

• Net free cash flow was negative at AUD (57) million, compared to AUD 677 million in 1H25.

Outlook and guidance

• Group RASK expected to increase approximately 3% in the second half year-over-year; international RASK to rise 1–3%.

• Entry into service and fleet transition costs to increase by AUD 20 million in 2H26; same job, same pay impact for FY26 now estimated at AUD 95 million.

• Qantas Loyalty EBIT expected to grow 10–12% for FY26; net freight revenue to remain stable.

• FY27 capital expenditure guidance raised to AUD 5.1–5.4 billion, reflecting accelerated fleet renewal.

• ROIC expected to moderate as invested capital rebuilds, following a high of 43.2% for the period.