Qantas Airways (QAN) H2 2025 earnings summary

Executive summary

• Underlying profit before tax reached $2.394 billion, up 15% year-over-year, with statutory profit after tax at $1.61 billion, reflecting strong demand, operational execution, and portfolio integration.

• Major fleet renewal underway, with $3.9 billion invested, 29 new aircraft delivered, and orders for next-gen models including 20 additional A321XLRs and Project Sunrise A350-1000ULRs.

• Customer satisfaction and operational performance improved, with NPS up 10 points for Qantas and 6 for Jetstar, and best on-time performance since 2019.

• Employee engagement rose, with a new share ownership plan granting $1,000 in shares annually to 25,000 employees and $29 million in thank you payments.

• A cyber incident in June affected nearly 6 million customers, with rapid response and ongoing support provided.

Financial highlights

• Revenue increased to $23.8 billion, with underlying EPS up 20% to $1.10 and operating cash flow at $4.3 billion.

• Statutory profit after tax was $1.61 billion, up 28% year-over-year; operating margin improved to 11.1%.

• Net debt ended at $5 billion, within the $4.6–5.7 billion target range; liquidity stood at $12.2 billion, including $2.2 billion in cash.

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

• Net capital expenditure was $3.9 billion, up 28% year-over-year, reflecting accelerated fleet renewal.

Outlook and guidance

• Strong travel demand expected to continue into FY 2026, with Group RASK forecast to rise and capacity guidance for FY26: Group Domestic +6%, Group International +4% year-over-year.

• 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.

• Entry into service and transition costs to rise by $30 million; same job, same pay costs to increase by $50 million.

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