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Key Highlights

  • Founded in 1920 and headquartered in Mascot, Sydney, Qantas provides domestic and international air transport through four segments: Qantas Domestic, Qantas International, the Jetstar Group and Qantas Loyalty.
  • It carries passengers and cargo under the Qantas and Jetstar brands and employs around 20,000 people.
  • Qantas reported a net negative impact of A$420 million from higher fuel costs linked to the Middle East conflict.
  • Earlier in 2026, the airline had flagged that its near-term jet fuel bill would be up to 32% higher than previously anticipated, as oil prices after the escalation of the US-Israeli war with Iran.

Air travel demand, fleet Investment and fuel costs continue to shape Qantas Airways’ operating environment. Qantas Airways (ASX:QAN) provides domestic and international passenger and cargo services through Qantas, Jetstar and its loyalty operations. Fleet renewal, network capacity and the performance of its major operating segments remain key areas of focus.

What the FY26 result showed

The key drag was fuel.

By segment, Qantas Domestic delivered EBIT of A$1.44 billion, Group International A$650 million and Qantas Loyalty A$625 million, up 12%. Jetstar Domestic Earnings rose 15%. FY26 Revenue of about A$25.5 billion, up 7.1% on FY25.

Qantas declared a fully franked final Dividend of 19.8 cents per share, totalling about A$300 million. Net Debt was A$6.2 billion, within the company's target range of A$5.5 billion to A$6.9 billion, and Liquidity stood at A$13.3 billion. Around 25,000 non-executive employees are to receive A$1,000 in Qantas shares.

Fleet renewal remains central to the investment story. Additional Boeing 787s are due from FY28, and retirement of the A380 fleet is set to begin in calendar year 2028.

Project Sunrise has been a long-running ambition. The airline released the first images of its ultra-long-range Airbus A350-1000ULR in November 2025. The FY26 release states the first A350 for the programme is due in April 2027, with non-stop Sydney to London flights from October 2027. The airline has also highlighted cabin features such as a wellness zone designed for ultra-long-haul journeys.

Other developments have also been in focus. In early August 2026, Qantas and a pilots' union reached a provisional wage agreement after long-haul pilots had voted in favour of industrial action. Qantas also announced it would divest its 33.32% stake in Jetstar Japan through a share buyback valued at about 8.2 billion yen, continuing its move away from budget international joint ventures. In April 2026, the competition regulator granted interim authorisation for Qantas and American Airlines to keep cooperating on trans-Pacific routes.

For the first half of FY27, Qantas expects domestic and international unit revenue (TRASK) to grow 8% to 10% compared with the first half of FY26, with capacity broadly flat year on year. It expects first-half fuel costs of about A$3.6 billion and forecasts Loyalty EBIT growth of 5% to 7%. Chief Executive Vanessa Hudson said it had been "another year of progress, with customer satisfaction at its highest in a decade."

Risks to Consider

The main risks include further Volatility in jet fuel prices, particularly while the Middle East conflict continues to affect oil markets. Industrial relations remain a watchpoint given the recent pilot negotiations. Aircraft delivery delays across the industry could affect fleet renewal and Project Sunrise timing. Qantas has also dealt with the fallout from a 2025 cyber breach that exposed customer data, which led to lower executive bonuses. Weaker consumer confidence could soften Demand for leisure travel.

What to Watch Next

The Annual General Meeting is scheduled for 6 November 2026, where management may provide a trading update. Investors are also likely to watch jet fuel price movements, forward booking trends, progress on A321XLR deliveries and the arrival of the first Project Sunrise A350 in April 2027. The first-half FY27 result, expected in February 2027, will show whether unit revenue growth has offset the higher fuel bill.

The Bottom Line

Qantas Airways is focused on executing its operating priorities while managing the company-specific risks and milestones outlined above. Progress across its core Business will shape the next phase of development.