Qantas has delivered another strong half-year result, its chief executive said, as the Australian group’s underlying and statutory profits were up slightly, despite cost inflation putting pressure on the airline.
Stable profits
Qantas ended the six-month period as of December 31, 2025, with an underlying profit of AU$1.4 billion ($1 billion) and a statutory profit of AU$925 million ($658.7 million), up 5.1% and 0.2% year-on-year (YoY). The Group’s operating margin came in at 12.3% compared to 12.4% for the same period the prior year.
Vanessa Hudson, the Chief Executive Officer (CEO) of Qantas, said that the carrier is already seeing “the benefits from the next generation aircraft that are flying, which, along with strong demand, our dual brand strategy, and expanding Loyalty business, helped us deliver another strong result.”
In H1 FY26, Qantas’ overall revenues and costs both increased by 6%, with Hudson noting that over the past 12 months, airport charges and government fees “have increased at double the rate of inflation.”
Qantas International’s performance dip
Out of Qantas’ three passenger segments, International was the only one to end the half-year with lower underlying earnings before interest and taxes (EBIT), which was 8% lower than H1 FY25.
The Austrian airline said that the segment’s lower operating margin – 6.2% versus 7.1% in H1 FY25 – was due to “increased labour costs […], investments in EIS [entry-into-service – ed. note] activities […], and engineering cost escalations from ongoing fleet health investments in the A330 and A380 fleet.”
The segment’s unit revenue was 0.5% lower YoY.
"Premium cabin demand remained strong in first half 2025/26 with 9% RASK outperformance in premium cabins compared to economy across the 787-9 network, reflecting continued strength of long-haul point-to-point routes.”
Qantas Domestic underlying EBIT was up 4.4%, while unit revenues increased by 1% YoY despite load factors decreasing by 1.8 percentage points, “driven by improved operations (fewer cancellations) and resource capacity growth with inherently lower seat factor.”
Qantas Domestic continued to lead the Group in margin performance with an operating margin of 16.1%, slightly ahead of Jetstar’s 15.8% operating margin, and well ahead of Qantas International’s 6.2%.
Jetstar’s unit revenue and underlying EBIT improved by 5.7% and 12%, “driven by strong demand, capacity growth from efficient new fleet, transformation activity offsetting CPI, and operational improvements, despite higher industry costs," the airline noted.
Rytis Beresnevicius
Strong travel demand to continue
Qantas stated that it expects strong travel demand to continue. However, it specifically highlighted that it will continue to monitor the “evolving economic environment” in the United States.
Despite that fact, it will launch flights between Sydney Airport (SYD) and Las Vegas Harry Reid International Airport (LAS) in December, with the thrice-weekly seasonal route continuing until March 2027.
Domestic unit revenue should increase by around 3% in H2 FY26 compared to H1 FY26, it said, adding that the international segment’s unit revenue is expected to grow by between 1% and 3%.
Hudson concluded that there is “a lot to be excited about” at Qantas, including the upcoming start of Project Sunrise. The airline’s first Airbus A350-1000 will begin test flights shortly, with delivery scheduled later in 2026.
“We are seeing the benefits of our fleet renewal flow through to customer experience, operational performance, and financial results.”
