The Qantas Airways Ltd (ASX: QAN) share price has flown higher by 8% after an excellent FY25 result.
Qantas is the airline company that owns Qantas, Jetstar and Qantas Loyalty.
Qantas FY25 result
Here are some of the highlights from 12 months to 30 June 2025:
- Underlying profit before tax increased 15% to $2.39 billion
- Statutory net profit after tax (NPAT) grew by 28% to $1.61 billion
- Underlying earnings per share (EPS) of $1.10, up 25%
- Final base dividend of $0.165 per share (totalling $250 million)
- Final special dividend of $0.099 per share (totalling $150 million)
The airline business pointed out that both customer satisfaction and on-time performance improved for both Qantas and Jetstar. Its on-time performance was the best since 2019.
It noted its group net capital expenditure was $3.9 billion, an increase of 22% year on year. This helped deliver 17 new aircraft. It also announced it had ordered 20 additional A321XLR aircraft, 16 of which have lie-flat business seats.
The company also noted that around 25,000 non-executive employees across the business will receive $1,000 Qantas shares as part of a new share plan.
Divisional performance
Its domestic business saw underlying EBIT (EBIT explained) climb 12% to $1.52 billion, with Qantas domestic unit revenue rising 5%. Jetstar grew underlying EBIT by 55%.
The international and freight segment saw underlying EBIT rise 20% to $903 million. Qantas international capacity increased 6%. Jetstar carried around 25% more customers internationally to and from Australia, supported by the launch of 11 new routes. Net freight revenue grew 7%.
Qantas Loyalty saw growth of active members and strengthening engagement, helping the division achieve 9% underlying EBIT growth for the full-year to $556 million. Qantas Frequent Flyers earned 10% more Qantas points and redeemed 8% more compared to the prior year. More business partners, such as David Jones, joined the program and cash inflows from partners increased 10%.
Outlook for the Qantas share price
The airline said it expects ongoing strong travel demand into the first half of FY26.
Group domestic unit revenue is expected to increase by between 3% to 5% in the first half of FY26. Group international unit revenue is expected to increase by between 2% to 3%. Qantas Loyalty is expected to grow by between 10% to 12% in FY26.
In terms of costs, fleet entry into service and transition costs are forecast to increase by $30 million to $160 million.
The gross impact of ‘same job same pay’ is expected to increase by $50 million to $115 million in FY26.
Industry costs, including airport and infrastructure charges, net of recoveries, are expected to increase by approximately $50 million.
Fuel costs are expected to be $2.6 billion.
Overall, FY26 is shaping up to be another good year for the business. I don’t think I can say it’s good value after rising around 90% in a year. But, I’d be very happy as a shareholder. Ongoing travel demand and sizeable dividends are a pleasing combination. It has done extremely well for shareholders.
There are other ASX growth shares that look more appealing to me though.
