Key highlights

  • Qantas reported FY26 Underlying Profit before tax of $2.06 billion, down $330 million, on 27 August 2026.
  • The Middle East conflict had a net Earnings impact of $420 million, after a $610 million rise in the fuel bill.
  • A final Dividend of 19.8 cents per share, worth $300 million, was announced, with up to 31 new aircraft due in the year ahead.

Qantas Airways Limited (ASX:QAN) released its FY26 results on 27 August 2026. The announcement covered earnings for the year ended 30 June 2026, which the company said were affected by record fuel costs and disruption linked to the conflict in the Middle East, as well as continued Investment in its fleet.

About Qantas

Qantas Group operates the Qantas and Jetstar airline brands across domestic and international routes, along with the Qantas Loyalty business. It is in the middle of a fleet renewal program that includes the Airbus A350 and Boeing 787 aircraft.

Headline earnings

Underlying profit before tax was $2.06 billion, down $330 million. Statutory profit after tax was $1.29 billion, down $316 million, and underlying Earnings Per Share were 96 cents, down 14 cents. The final dividend is 19.8 cents per share, a $300 million payment, and group net Capital Expenditure was $4.0 billion, up 3%.

The company said the net impact of the Middle East conflict was $420 million, after fuel costs increased by $610 million and mitigation actions were applied.

Demand and operating conditions

Qantas described two different operating environments. In the first half, Demand grew across domestic and international networks, supported by new aircraft and new routes. In the final four months of the year, Business and consumer confidence fell, and some large corporates and governments reduced travel spending.

Group Domestic delivered $1.44 billion in underlying EBIT. Qantas Domestic Revenue increased 5% on a 3% increase in capacity, and Jetstar Domestic increased earnings by 15%. Qantas Loyalty delivered double-digit earnings growth, with a record number of Reward Seats booked.

Fleet renewal and investment

Seventeen new aircraft arrived in FY26, and up to 31 more are expected in the year ahead, mostly joining Qantas. The first Project Sunrise A350-1000ULR is due to arrive in April, and the company plans to begin retiring its A380 fleet from 2028. Other investments include a $100 million investment in new facilities, with a new Training centre opened in Mascot, and a share grant of $1,000 for about 25,000 non-executive employees.

Risks to consider

Fuel prices and geopolitical events can change costs quickly, and the company said cost pressures are set to continue. The final four months of FY26 showed that demand from corporate and government travellers can fall at short notice.

Fleet renewal involves heavy capital spending, and delivery schedules for new aircraft may change. Profit before tax and earnings per share were lower than in FY25, and mitigation measures such as fare and capacity changes may not offset every cost increase.

Catalysts to watch

Items to watch include the arrival of up to 31 new aircraft, the first Project Sunrise A350-1000ULR in April, direct Sydney to Las Vegas flights, fuel price movements, and the start of A380 retirements from 2028.