The Qantas Airways Ltd (ASX: QAN) share price went up 5% after the airline announced its FY26 result.
Qantas is Australia’s leading airline with its consumer-facing brands Qantas and Jetstar, the Qantas freight business and the Qantas loyalty business.
FY26 result
Here are some of the highlights from the 12 months to 30 June 2026:
- Revenue grew 7.1% to $25.5 billion
- Underlying profit before tax fell by 14% to $2.06 billion
- Statutory net profit after tax declined by 20% to $1.29 billion
- Operating cashflow dropped 8.5% to $3.9 billion
- Net free cashflow declined $515 million to negative $75 million
- FY26 final dividend per share of $0.198
- FY26 full-year dividend per share of $0.396
What happened in this result?
Despite all of the disruption to Qantas during the 2026 financial year, it reported that its customer satisfaction levels were at the highest in a decade, with “world-leading operational performance”.
Qantas domestic grew revenue by 5% to $8 billion, though underlying EBIT declined 14% to $907 million due to higher fuel prices and reduced corporate demand. There was strong performance prior to the Middle East conflict.
The Qantas international division saw revenue rise 8% to $9.9 billion, though underlying EBIT sank 38% to $371 million amid higher costs, particularly for the A380 fleet.
Jetstar Group revenue rose 5% to $6 billion and underlying EBIT dropped 6% to $723 million. There were higher fuel costs and one-off fleet transition costs.
Qantas loyalty saw revenue climb 12% to $2.9 billion and underlying EBIT rose 12% to $625 million. Qantas frequent flyer members grew 7% to 18.9 million.
The company also noted that 17 new aircraft were delivered in FY26.
Outlook for the Qantas share price
The company gave some commentary about FY27.
It said travel demand remains resilient as customers continue to prioritise travel. International demand across Qantas and Jetstar remains “strong”, supported by customers redirecting travel away from the Middle East while domestic demand is tracking broadly in line with the fourth quarter of FY26.
With the above in mind, group domestic total unit revenue (TRASK) is expected to increase by approximately 8% to 10% in the first half of FY27 compared to the first half of FY26. Group international TRASK is also expected to increase by between 8% to 10% over the same period. This is aligned with the group’s current fuel outlook.
Jet fuel prices are expected to remain elevated in the first half of FY27, with total fuel costs expected to be approximately $3.6 billion, including hedging, gross carbon costs and fuel transformation initiatives.
Qantas loyalty is expected to continue providing “earnings resilience”, with underlying EBIT forecast to grow by between 5% to 7% in FY27. This segment is on track to achieve its 2030 target of underlying EBIT of between $800 million to $1 billion by 2030.
It’s targeting transformation costs of approximately $475 million in FY27 to offset CPI.
The Qantas share price has risen in response to this news. The company has continued to perform well and I’m not surprised investors liked this result because of its resilience in multiple areas, including the loyalty segment.
I’d be happy if I were a Qantas shareholder, but I’m not sure how much earnings growth it can achieve with Middle East events looming over the business.
