Qantas has posted a robust first half for FY26, pairing earnings growth with accelerated fleet renewal, major Frequent Flyer program improvements and fresh network expansion – including the first direct service between Sydney and Las Vegas.
Publishing its results for the six months to 31 December 2025, the Group signaled confidence across domestic, international and loyalty divisions, while flagging cost pressures from airport and government charges.
CEO: “Delivering strong earnings growth”
Qantas Group CEO Vanessa Hudson said the result underscored momentum across the dual-brand strategy and loyalty ecosystem.
“As we enter an exciting new era for the Qantas Group, our focus continues to be on delivering for our customers, employees and shareholders. By consistently delivering strong earnings growth we’re able to continue investing in the largest fleet renewal in our history.”
Hudson said next-generation aircraft were already boosting performance.
“We’re 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.
“These new aircraft are not only improving the experience for our customers and opening up new opportunities for our people, they’re also helping drive our financial performance.
“Around 60 per cent of Jetstar’s increase in profitability in the half was driven by its new aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes.
“This gives us confidence in the benefits that will flow once Qantas’ new aircraft reach scale. We’ve already started to see an acceleration in deliveries for Qantas, with six new aircraft arriving in the half and a further 30 arriving over the next 18 months.
“Some of these new aircraft will replace older aircraft, while some will support growth by opening up new routes, like the ultra-long range A350s, which will operate Project Sunrise flights.”
On shareholder returns, Hudson added:
“Along with the investment we are making in our customers and people, we are also increasing returns to shareholders. The Board has approved a $300 million fully franked base dividend, an increase of $50 million, along with a share buy-back.
“None of this would be possible without the dedication and professionalism of our 30,000 team members across the Qantas Group. They are the ones delivering these improvements every day for our customers, and I want to thank them for their continued commitment. We remain on track to award another $1,000 in shares to non-executive employees later this year.
“Despite the strong performance, we have seen a sharp increase in some costs like airport charges and Government fees, which have increased at double the rate of inflation over the past 12 months. We are offsetting these where possible through transformation and we’re working across the industry to address what can be done to ensure this doesn’t impact the ongoing affordability of air travel in this country.”
Group Domestic: EBIT up 14%
Group Domestic delivered Underlying EBIT of $1.05 billion, up 14 per cent, as both Qantas and Jetstar benefited from sustained demand and fleet renewal.
Qantas Domestic revenue rose 5 per cent on 4 per cent higher capacity. Business-purpose travel revenue increased 6 per cent, driven by SMEs and Western Australia’s resources sector, while premium leisure revenue climbed 9 per cent.
Six new aircraft joined the fleet, including A321XLRs which entered service in September. As deliveries continue, older Boeing 737s will begin retiring from late 2026. QantasLink expanded intra-WA capacity by 10 per cent with additional A320 and A319 aircraft.
The carrier is also rolling out its new Economy Plus product across A220, A321XLR, A330 and 737 fleets, complimentary for Platinum One, Platinum and Gold members.
Jetstar carried more than 8.5 million passengers domestically, delivering a 38 per cent increase in Underlying EBIT. More than half of its customers flew for under $150, reinforcing its value proposition. The redeployment of aircraft following the closure of Jetstar Asia supported growth in Australia and New Zealand.
Group International: Capacity up, costs bite
International demand remained strong, particularly to Japan, Bali and across the Tasman. However, Group International Underlying EBIT (excluding Jetstar Asia and Jetstar Japan) fell 6 per cent to $463 million, largely due to higher engineering costs, wage increases and training expenses tied to new aircraft.
The return of another A380 lifted Qantas International capacity by 5 per cent, with revenue also up 5 per cent. Premium cabin demand and yields outpaced Economy.
Demand from the US to Australia strengthened, though softer Economy demand from Australia to the US prompted schedule adjustments, including replacing the A380 with a 787 on Melbourne–Los Angeles and redeploying the A380 to Sydney–Singapore.
Jetstar’s Australian international arm grew earnings 9 per cent, carrying almost 600,000 more passengers. New routes included Newcastle–Denpasar, Gold Coast–Denpasar, Brisbane–Cebu and Perth–Manila. The Group confirmed the closure of Jetstar Asia and its intention to sell its stake in Jetstar Japan.
Qantas Freight reported 5 per cent net revenue growth and will begin operations at Western Sydney Airport’s 24-hour cargo precinct in mid-2026.
Loyalty: EBIT up 12%, major enhancements unveiled
Qantas Loyalty delivered Underlying EBIT of $286 million, up 12 per cent. Membership climbed beyond 18.3 million, with points earn up 10 per cent and redemptions rising 17 per cent.
More than 2.5 million reward seats were booked in the half – around 14,000 per day – supported by the rollout of Classic Plus. Retail partner earn surged nearly 20 per cent, with Woolworths and Red Energy posting double-digit growth. The David Jones partnership launched in September.
Financial services earn rose 6 per cent, with Qantas Money home loans surpassing $2 billion in value. Retail redemptions climbed 15 per cent, with Ticketek up 50 per cent.
The airline also announced comprehensive improvements to the Frequent Flyer program, signaling further investment in member value.
Financial framework and outlook
Liquidity closed at $12.6 billion. Net debt increased to $5.6 billion, at the bottom of the target range. Net capital expenditure totalled $1.8 billion as fleet renewal accelerated, with FY26 capex forecast between $4.1 and $4.3 billion.
The Board approved a fully franked interim dividend of $300 million (19.8 cents per share), payable 15 April 2026, alongside an on-market buyback of up to $150 million.
Looking ahead, Qantas expects continued strong demand. Group Domestic unit revenue is forecast to rise around 3 per cent in 2H26, while Group International unit revenue is expected to grow 1–3 per cent. Qantas Loyalty is targeting 10–12 per cent EBIT growth for FY26.
With fleet expansion accelerating and loyalty deepening its reach, Qantas is positioning itself for long-term growth – even as industry cost pressures remain firmly in focus.
