Qantas has announced a strong full-year result, with higher earnings across most parts of the business, a major fleet expansion on the way and a new staff share plan for thousands of employees.
Chief executive Vanessa Hudson said the airline group’s focus this year had been “all about delivery”.
“While we are pleased with the progress we are making, we remain focused on further improving our performance and continuing to deliver for our customers, people and shareholders,” she said.
Qantas confirmed an order for 20 Airbus A321XLR aircraft, 16 of them to be fitted with lie-flat business class seats. The group also said around 25,000 non-executive employees will receive $1,000 worth of shares each year under a new plan.
Hudson said strong demand across both Qantas and Jetstar helped lift earnings, with four million more customers carried compared with the previous year.
“Jetstar had a standout year, with its fleet renewal providing a significant boost to earnings,” she said. “In a high cost of living environment, Jetstar continued to provide value for customers, with around one in three travelling for under $100.”
Despite the profit rise, Hudson noted that costs in areas such as engineering, wages, airport charges and supply chains had outpaced inflation. “Transformation remains a priority given ongoing increases … and the impact of Same Job Same Pay legislation,” she said.
Dividends and rewards
The airline announced it will pay a base final dividend of $250 million and a special dividend of $150 million, bringing total shareholder payouts for the year to $800 million.
Hudson said staff had been key to the result. “They are the real stars of our performance and we are introducing a new employee share plan so they can share in our success.”
Domestic performance
Qantas Domestic delivered underlying earnings before interest and tax (EBIT) of $1.52 billion, up 12 per cent. Demand for charter flights also increased, boosted by the arrival of five extra Airbus A319s.
QantasLink took delivery of five new A220s and retired its older Q200 and Q300 aircraft. The first two A321XLRs will begin flying domestically in mid-September, making Qantas the first Asia-Pacific airline to operate the type.
Jetstar carried a record 16 million passengers in Australia, helping lift earnings by 55 per cent. Following the closure of Jetstar Asia, its fleet of 13 A320s will be redeployed across Jetstar Australia, Jetstar New Zealand and QantasLink.
International and freight
Group International earnings rose 20 per cent to $903 million. Qantas International added capacity with the return of another A380, while Jetstar launched 11 new overseas routes.
Work is progressing on Project Sunrise, with Qantas’ first A350-1000ULR due to roll off the assembly line in Toulouse in October 2025, ahead of delivery in October 2026. The aircraft will eventually be used for non-stop flights from Australia’s east coast to London and New York.
Jetstar carried about a quarter more international passengers year-on-year, driven by routes into Japan, Thailand and South Korea. Refurbished Boeing 787s are set to return to service later this year.
Freight revenue rose 7 per cent, with Qantas preparing for its first freighter operation from Western Sydney Airport in 2026.
Loyalty growth
Qantas Loyalty lifted EBIT 9 per cent to $556 million, with frequent flyers earning and redeeming more points than the previous year. Hudson said the launch of Classic Plus had boosted reward bookings to more than one million.
Retailers have continued to sign up to the program, with David Jones the latest to join. Long-term partner Woolworths has also extended its deal with Qantas beyond 2030.
Customer experience
Qantas said 17 new aircraft joined the fleet in the past year, contributing to its best on-time performance since 2019. Jetstar’s punctuality also improved, with a cancellation rate of under 2 per cent.
The airline has opened new lounges in Adelaide and Broome, started upgrades in Sydney, Auckland and Los Angeles, and switched on free international Wi-Fi on some trans-Tasman and South-East Asia routes.
People and sustainability
Staff training and development was expanded, while engagement scores rose seven points in the latest survey. Alongside the new share scheme, non-executive staff received a one-off $1,000 “thank you” payment in December 2024.
On sustainability, Qantas said it had committed more than $100 million from its $400 million Climate Fund to sustainable aviation fuel (SAF) and other decarbonisation projects. The airline also imported SAF into Sydney for the first time.
Legal and cyber issues
The Federal Court has finalised the case over Qantas’ 2020 decision to outsource ground handling jobs. The airline apologised again to affected staff after a settlement of $120 million was reached with the union.
A cyber incident in June affected 5.7 million customers, with some personal data exposed. Qantas said support services and identity protection were being provided to those impacted.
Outlook
The group expects strong travel demand to continue into the first half of FY26, with both domestic and international unit revenues forecast to rise. Jetstar Asia is expected to record a $23 million loss for the period as its closure costs are absorbed.
Hudson said the next year would bring “a lot to be excited about”, including new A321XLR aircraft, more sustainable aviation fuel and progress on the first Project Sunrise flights.
