Key Highlights

  • Fuel costs are expected to be about $3.6 billion in the first half of FY27.
  • Group International and Freight underlying EBIT fell to $650 million as fuel costs outweighed strong demand.
  • Qantas Loyalty underlying EBIT rose 12 per cent to $625 million.
  • The Annual General Meeting is scheduled for 6 November 2026 in Canberra and online.

Qantas Airways Limited (ASX:QAN) is a member of the S&P/ASX 50, and its latest annual result shows a Business earning strong Revenue growth while fuel costs and the Middle East conflict squeeze profit. That tension is the central question for investors watching the airline.

What Qantas does

Qantas Group operates the Qantas and Jetstar airline brands across domestic and international routes, together with freight. It also owns Qantas Loyalty, a large frequent flyer and partner-rewards business that earns income independently of seat sales.

Its reporting segments include Group Domestic, Group International and Freight, and Loyalty, which gives the group several Earnings streams with different sensitivities to fuel and demand.

Latest developments

On 27 August 2026 the company reported its full-year results for the year to June 2026. Underlying Profit before tax was $2.06 billion, down $330 million on the prior year. Statutory profit after tax was $1.29 billion, down $316 million, and underlying Earnings Per Share were 96 cents, down 14 cents.

Management attributed a net hit of $420 million to the Middle East conflict and a $610 million increase in the fuel bill. A final Dividend of 19.8 cents per share, fully franked and worth $300 million, was payable on 14 October 2026, following an Interim Dividend of $300 million paid in April. A previously flagged $150 million on-market buy-back will not proceed.

Financial and operational evidence

Segment results from the 27 August 2026 release show mixed trends. Group Domestic underlying EBIT was $1.44 billion. Qantas Domestic revenue rose 5 per cent on 3 per cent more capacity, while Jetstar Domestic earnings rose 15 per cent.

Group International and Freight EBIT fell to $650 million, as higher fuel costs outweighed strong demand, including a surge in bookings to Europe. Qantas International revenue rose 8 per cent and Jetstar International revenue rose 14 per cent.

Qantas Loyalty underlying EBIT rose 12 per cent to $625 million, with active members up 6 per cent and a record five million reward seats redeemed. Net Debt was reported at $6.2 billion, which the company described as within its target range, and net Capital Expenditure was $4.0 billion.

Seventeen new aircraft were delivered during the year, with up to 31 more due in the 2027 financial year.

Material risks

Fuel is the most visible risk. The company expects fuel costs of about $3.6 billion in the first half of the 2027 financial year, and management has said elevated prices are likely to keep pressuring results. Geopolitical disruption in the Middle East can affect routings, costs and demand.

Execution risk is also significant overall. A large fleet renewal programme, heavy capital spending and the long-range Project Sunrise rollout all depend on aircraft delivery schedules and operational delivery.

Leverage is within the stated target range, yet the cancelled buy-back shows that capital returns can change when conditions tighten.

Milestones to watch

The company's annual general meeting is scheduled for 6 November 2026 in Canberra and online. Shareholders will vote on the remuneration report, board elections and a proposed long-term incentive award for chief executive Vanessa Hudson, which would raise her opportunity from 180 per cent to 250 per cent of fixed remuneration.

For the first half of the 2027 financial year, management expects unit revenue in both Group Domestic and Group International to rise by 8 to 10 per cent, and Loyalty earnings are expected to grow by 5 to 7 per cent over the year.

The first Project Sunrise A350-1000ULR is due in April 2027, and the first non-stop Sydney to London flight is planned for October 2027.