Qantas Group 1H25 results: Qantas up 11% as fleet renewal bolsters both carriers

Qantas Group has outlined a strong financial outlook today as the carrier posted an underlying profit of $1.39 billion, an increase of 11 per cent.

After tax, the airline reported a net profit of $923 million, impacted by a $65 million increase in legal provisions following the Federal Court case tied to the October 2024 dismissal of 1,700 ground handling staff.

“The Group’s performance highlights the benefits of having both a premium and a low fares airline and a strong loyalty program,” Qantas Group CEO Vanessa Hudson said.

“Our financial strength means we are now in a position to pay our shareholders dividends for the first time in almost six years.

“The dedication of our people and the continued loyalty of our customers underpin our success, and I want to sincerely thank them.”

Market performance and growth

Qantas and Jetstar carried 10 per cent more passengers which directly increased profitability. Jetstar, in particular, saw record-breaking passenger numbers, with one in three customers flying for under $100 despite the high cost-of-living environment.

Fleet renewal remains a key focus for the group with Qantas introducing five new A220 aircraft and Jetstar expanding its A321LR and A320neo fleet to 21.

Qantas is also investing in an extensive cabin upgrade program for 42 Boeing 737 aircraft, featuring next-generation seats and larger overhead lockers to enhance passenger experience.

Loyalty program expansion

Qantas Loyalty continues to thrive, with 17 million members and strong engagement growth. Revenue from partners increased by 11 per cent, while Classic Plus rewards added 20 million new seats to the program, further incentivising member participation.

Domestic vs international performance

Group Domestic reported $916 million in Underlying EBIT, bolstered by strong corporate and leisure travel demand. Qantas’ domestic unit revenue is up 5 per cent while Jetstar’s domestic earnings surged 54 per cent.

Qantas’ long-haul, direct routes continued to perform well, with additional A380s set to return to service in 2025 and Project Sunrise A350-1000ULR aircraft entering final assembly in late 2025.

Jetstar’s international growth remained strong, with 26 per cent capacity expansion, the addition of six new international routes and strategic redeployment of Boeing 787s to longer-haul destinations..

Outlook

Qantas will continue to invest in fleet renewal and customer experience, including the introduction of the A321XLR and further cabin enhancements.

Despite higher operational costs, including airport charges and supply chain constraints, Qantas maintains strong liquidity, with $11.5 billion in cash and assets.

For the first time since FY19, the Group is issuing fully franked dividends, including a $250 million base dividend and a $150 million special dividend.

CEO Hudson reaffirmed Qantas’ commitment to enhancing customer experience, delivering operational improvements, and continuing fleet modernisation to strengthen the Group’s competitive position in the global aviation market.