Qantas Group CEO Vanessa Hudson has declared the Flying Kangaroo is entering “an exciting new era” as the airline unveiled a strong 1H26 performance, a 20 per cent lift in its base dividend and sweeping changes to its Frequent Flyer program.
Addressing media and investors at its Mascot headquarters, Hudson opened by thanking employees across the network for their role in delivering the half-year result.
“I want to acknowledge and thank you for the role that you have all played in these results, along with the rest of our employees across our network,” Hudson said.
She said the Group continued to deliver across operational performance, customer metrics and financial returns.
“It’s great to be able to share the Qantas Group’s results for the first half of the financial year, which show we are continuing to deliver for our customers, people and shareholders.
“Qantas was again the most on-time major airline in Australia. Customer satisfaction and brand trust are at their strongest levels in three years. Jetstar continued to offer great value with over half of its domestic customers travelling for under $150. Frequent Flyers used their points to book more than 2.5 million reward seats. We’re on track to create 8,500 Australian jobs by 2030. And we delivered another strong financial result, which is critically important as we ramp up our investment in new aircraft.”
Direct Las Vegas flights and loyalty overhaul
Hudson confirmed Qantas will launch the first direct flights between Sydney and Las Vegas and described major changes to the Frequent Flyer program.
“As we enter an exciting new era for the Qantas Group, we’re making significant improvements for our customers and our people. Today we’ve unveiled the biggest changes to frequent flyer status in the program’s history.
“We have also announced we will launch the first direct flights between Australia and Las Vegas. This seasonal service will cut travel time between Sydney and Las Vegas by up to five hours.”
Demand and fleet driving performance
Hudson said earnings growth reflected strong travel appetite and the benefits of fleet renewal.
“The underlying earnings growth we have delivered demonstrates the strength of our integrated portfolio across Qantas, Jetstar and Qantas Loyalty,” she said.
“What’s driving this performance is really clear. Continued strong demand for travel combined with new aircraft that are fundamentally changing how we deliver for our customers and grow our business. Australians’ appetite for travel continues to be incredibly strong.”
Around 40 of more than 200 aircraft on order have now been delivered.
“Around 60 per cent of Jetstar’s increase in profitability was driven by its next generation aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes,” she said. “And as Qantas’ fleet renewal ramps up and its new aircraft reach scale over the next few years, we expect to see similar benefits.”
She noted accelerated deliveries, including A321XLRs entering service and 30 more Qantas aircraft due over the next 18 months.
“In my three decades working here I can’t remember this level of aircraft deliveries in such a short space of time.”
Jobs, Singapore base and cost pressures
Hudson reaffirmed plans to create 8,500 jobs by 2030 and re-establish a cabin crew base in Singapore to support the growing international network. However, she warned of mounting external cost pressures.
“Despite our strong performance, we’ve seen an increase in costs that are largely outside our control,” she said. “Airport charges and government fees have increased at double the rate of inflation over the past 12 months.”
Biggest Frequent Flyer changes in 40 years
Hudson said the loyalty overhaul would create more opportunities for members.
“For the first time, members will be able to roll over unused Status Credits from one year to the next,” Hudson told the audience. “They will also be able to earn Status Credits through everyday spending on the ground, not just when they are flying.
“And next month we’ll launch a significantly enhanced search tool that will make it much easier to find reward seats across Qantas and 30 partner airlines.”
The Board also approved a 20 per cent increase to the base dividend and a share buyback.
“By consistently delivering strong earnings growth we can invest in our customers and people while also rewarding shareholders.”
