Qantas Airways has posted record first-half underlying earnings, driven by resilient travel demand across its full-service and budget operations and supported by the addition of new-generation aircraft to its fleet. The Australian flag carrier reported an underlying profit before tax of A$1.46 billion for the six months ended December 31, surpassing both the Visible Alpha consensus estimate of A$1.42 billion and last year’s A$1.39 billion result.
Strong performance at Jetstar, Qantas’ low-cost subsidiary, played a key role in the airline’s earnings growth. Jetstar recorded a 38% surge in underlying operating profit, with new aircraft contributing roughly 60% of its profit increase. Solid leisure travel demand and improved fuel efficiency from newer planes strengthened margins in the competitive budget travel market.
Qantas’ domestic division posted a 5% rise in revenue, supported by increased flight capacity and steady passenger demand. However, Qantas International reported a 6% decline in earnings, largely due to higher operating costs, wage increases, and additional training expenses associated with the rollout of new aircraft.
During the first half, Qantas took delivery of nine aircraft and expects 30 more to join its fleet over the next 18 months. CEO Vanessa Hudson said the benefits of next-generation aircraft are already evident, improving operational efficiency and positioning the airline for long-term growth as more planes enter service.
Looking ahead, Qantas forecasts second-half domestic revenue growth of around 3%, consistent with the first half. Fuel costs are projected at A$2.5 billion, slightly lower than the previous period. Analysts at Jefferies described the earnings as a solid result, noting that investor attention will focus on whether strong travel demand continues.
Despite shares initially rising 4% to A$11.09, they later dipped 0.9%. Qantas also announced a A$150 million share buyback and an interim dividend of 19.8 Australian cents per share, reinforcing confidence in its financial outlook.


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