Australia's major airline Qantas reported its fiscal 2026 results (July 2025-June 2026), with underlying profit before tax falling 14% year-on-year to A$2.06 billion (US$1.48 billion) due to soaring fuel costs, slightly beating market expectations of A$2 billion. CEO Hudson said that while travel demand remained strong, a surge in fuel costs amid the Middle East conflict reduced second-half profit by A$420 million. The company responded with fare increases, cuts to domestic capacity, and redeployment of aircraft to more profitable international routes, but only partially offset the impact of higher fuel costs. Although tensions in the Middle East have eased, the company expects jet fuel prices to remain high in the first half of fiscal 2027, with net fuel costs projected at around A$3.6 billion, significantly above the A$2.6 billion in the same period last year. Meanwhile, total unit revenue for domestic and international operations in the first half of fiscal 2027 is expected to rise 8-10%, both above the average forecast. Qantas also announced it will begin retiring its Airbus A380 superjumbos in 2028, four years earlier than originally planned, and said it is in talks with Airbus and Boeing to convert options for 20 A350 and Boeing 787 aircraft into firm orders from 2030 onward. Hudson noted that maintenance costs for the A380 are rising as production has ceased. The company declared a final dividend of A$0.198 per share, and decided to cancel its A$150 million share buyback announced in February, which had not been started due to the outbreak of the Middle East conflict.
Airbus Group SEQantas is in talks to convert options for Airbus A350 aircraft into firm orders, indicating potential future demand.
The Boeing CompanyQantas is in talks to convert options for Boeing 787 aircraft into firm orders, indicating potential future demand.
