Qantas Airways (QAN) H2 2025 earnings summary

Executive summary

• Underlying profit before tax reached $2.39 billion, up $316 million year-over-year, with underlying EPS up 20% and strong operating cash flows of $4.3 billion.

• Statutory profit after tax was $1.61 billion, up 28% year-over-year; underlying EPS rose to $1.10, up 22c year-over-year.

• Major fleet renewal underway, with $3.9 billion invested and 29 new aircraft added, including next-gen models for Qantas, QantasLink, and Jetstar.

• Customer satisfaction improved, with NPS up 10 points for Qantas and 6 for Jetstar; operational performance and on-time metrics also strengthened.

• Employee engagement rose, with new share ownership plan and $29 million in thank you payments to non-executive staff.

Financial highlights

• Revenue increased to $23.82 billion, up from $21.94 billion in FY24.

• Operating margin improved to 11.1% (up 0.7 points year-over-year); net debt ended at $5 billion, within the $4.6–$5.7 billion target range.

• Operating cash flow reached $4.3 billion, with net capital expenditure of $3.9 billion.

• $431 million in share buybacks and $831 million in dividends paid, including a $250 million base and $150 million special dividend.

• Rolling 12-month ROIC at 50.8%, down from 57.9% in FY24 as invested capital rebuilds.

Outlook and guidance

• Strong travel demand expected to continue into FY 2026, with Group RASK forecast to rise.

• Domestic RASK expected to increase 3%-5%, International RASK up 2%-3% year-over-year in the first half.

• Qantas Loyalty EBIT projected to grow 10%-12% in FY 2026.

• FY26 net capital expenditure guidance of $4.1–$4.3 billion; net debt expected at or below the middle of the target range.

• 49 new aircraft to join over the next two years, including Project Sunrise A350s.