What Did Weigh on Qantas (ASX:QAN) Airline Profits

Sonal Goyal

22 October 2026 05:23 PM AEDT

What Did Weigh on Qantas (ASX:QAN) Airline Profits

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Key highlights

Qantas Airways Ltd (ASX:QAN) shares were up 1.26% at $8.455 during the trading session on 22 October 2026, while the S&P/ASX 200 Industrials [XNJ] index was up 1.05%.
Qantas reported FY26 Underlying Profit Before Tax of $2.06 billion, down $330 million, and statutory profit after tax of $1.29 billion in its 27 August 2026 release.
The net impact of the Middle East conflict was $420 million, including a $610 million increase in the fuel bill.

Qantas Airways Ltd (ASX:QAN) shares were up 1.26% at $8.455 during the trading session on 22 October 2026. As at 3:55 pm GMT+11, the S&P/ASX 200 Industrials [XNJ] index was at 8,199.50, up 1.05% (85.60 points), while the S&P/ASX 200 [XJO] was at 8,788.70, up 0.48%, and the All Ordinaries was at 8,911.80, up 0.50%. Qantas is Australia’s national airline group, operating Qantas, Jetstar and Qantas Loyalty. Qantas reported FY26 Underlying Profit Before Tax of $2.06 billion, down $330 million, and statutory profit after tax of $1.29 billion in its 27 August 2026 release.

Share price snapshot

At $8.455, Qantas Airways Ltd (ASX:QAN) shares were up 1.26% during the trading session on 22 October 2026. Over the same session, the S&P/ASX 200 Industrials [XNJ] index was up 1.05% (85.60 points) at 8,199.50, the S&P/ASX 200 [XJO] was up 0.48% at 8,788.70 and the All Ordinaries was up 0.50% at 8,911.80, as at 3:55 pm GMT+11. The figures are intraday readings during the session and can change as trading continues. The company’s most recent announcement covered in this article is its FY26 results.

About Qantas Airways Ltd: business overview

Qantas Airways Limited operates the Qantas and Jetstar airline brands across domestic and international routes, plus Qantas Loyalty, a frequent flyer and rewards business. It is renewing its fleet, with new aircraft including Airbus A350s and Boeing 787s.

FY26 financial results

In an ASX and media release dated 27 August 2026, Qantas reported Underlying Profit Before Tax of $2.06 billion, down $330 million, statutory profit after tax of $1.29 billion, down $316 million, and underlying EPS of 96 cents, down 14 cents. The final dividend is 19.8 cents per share, and the release shows a $300 million shareholder return. Group net capex was $4.0 billion, up 3%, with 17 new aircraft delivered.

Impact of the Middle East conflict

The company said fuel prices surged in the final four months of the year, increasing its fuel bill by $610 million, and that business and consumer confidence fell, with some corporates and government reducing travel spending. Adjustments to fares and capacity, and redeployment of aircraft for Europe flights, limited the net earnings impact to $420 million. Qantas International revenue grew 8% on a 7% capacity increase, and Qantas Domestic revenue rose 5% on a 3% capacity increase.

Fleet, customers and employees

Up to 31 more aircraft are expected in the year ahead, with the first Project Sunrise A350-1000ULR due in April and retirement of the A380 fleet starting from 2028. Qantas Loyalty delivered double-digit earnings growth. Customer Net Promoter Score rose 7 points for Qantas and 1 point for Jetstar. About 25,000 non-executive employees will receive $1,000 in shares.

Related sector context

Transport and infrastructure companies are influenced by passenger and traffic volumes, fuel and operating costs, capacity decisions and regulated or contracted pricing. On 22 October 2026, the S&P/ASX 200 Industrials [XNJ] index was at 8,199.50, up 1.05%, and the S&P/ASX 200 was at 8,788.70, up 0.48%. The group spans toll roads, airlines, airports, rail freight and terminal operators, whose results are reported through traffic, passenger, volume and distribution measures alongside profit.

Results in the segment are often accompanied by operating statistics, such as average daily traffic, passenger movements, seat capacity or tonnes hauled, which companies publish alongside financial results. Regulatory settings, concession terms and fuel prices can influence outcomes, and several of these businesses carry long-dated debt to fund assets with long lives.

Risks to weigh in

Profit was lower than a year earlier, fuel costs rose sharply and the conflict affected confidence and demand in the final four months. Cost pressures are expected to continue, and the fleet renewal requires significant capital spending of about $4.0 billion per year. Aircraft delivery timing, labour costs, currency, fuel hedging and regulatory conditions can affect outcomes.

Catalysts on watch

Items to watch include the first A350-1000ULR arrival in April, further aircraft deliveries, fuel prices, the Sydney–Las Vegas service, and half-year results.

Wrapping up

Qantas’ 27 August 2026 release recorded lower profit as fuel costs and demand softness affected the second half, alongside continued fleet investment and a final dividend. Later results will show how fuel and demand develop.

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