Qantas Group has reported an underlying profit of $1.46 billion for the first half of FY26, with statutory net profit after tax of $925 million, as strong travel demand and fleet renewal supported earnings growth across its domestic, international and loyalty businesses.
The board approved a fully franked interim base dividend of $300 million (19.8 cents per share), up 20 per cent on the prior comparable period, and announced plans for an on-market share buyback of up to $150 million. The dividend will be paid on 15 April 2026.
Group liquidity stood at $12.6 billion at the end of the half, including $1.8 billion in cash. Net debt increased to $5.6 billion, at the bottom of the company’s $5.6 billion to $7.0 billion target range, as capital expenditure accelerated to $1.8 billion amid the largest fleet renewal program in the airline’s history.
Chief Executive Vanessa Hudson said next-generation aircraft were already contributing to profitability through network growth, improved efficiency and customer benefits.
Six new aircraft joined the Qantas fleet during the half, with a further 30 expected over the next 18 months. Some aircraft will replace older Boeing 737s from late 2026, while others — including ultra-long-range Airbus A350s for Project Sunrise — will support growth.
Jetstar’s profitability uplift was significantly supported by new aircraft, with around 60 per cent of its earnings increase attributed to fleet renewal.
Group Domestic delivered underlying EBIT of $1.05 billion, up 14 per cent, supported by sustained travel demand and improved operational performance.
Qantas Domestic revenue rose 5 per cent on a 4 per cent increase in capacity, driven by 6 per cent passenger revenue growth in business travel — particularly among small and medium enterprises and the Western Australia resources sector — and 9 per cent growth in premium leisure revenue.
Jetstar carried more than 8.5 million domestic passengers and posted a 38 per cent rise in underlying EBIT, supported by strong leisure demand, new A320neo and A321LR aircraft, and transformation initiatives. More than half of Jetstar’s customers flew for under $150 during the period.
Group International underlying EBIT (excluding Jetstar Asia and Jetstar Japan) fell 6 per cent to $463 million, largely reflecting higher engineering, wage and industry costs, as well as training expenses for new aircraft.
International capacity increased 5 per cent with the return of another A380, and revenue rose 5 per cent, supported by premium cabin demand. Qantas said demand from the United States to Australia remained strong, although softer economy demand in the opposite direction prompted schedule adjustments.
Jetstar’s Australian international operations posted a 9 per cent earnings increase, carrying almost 600,000 additional passengers. The group closed Singapore-based Jetstar Asia in July and announced plans to sell its stake in Jetstar Japan.
Qantas Freight recorded 5 per cent net revenue growth and will commence operations at Western Sydney Airport’s 24-hour cargo precinct in mid-2026.
Qantas Loyalty delivered underlying EBIT of $286 million, up 12 per cent, driven by growth in the Frequent Flyer program, Business Rewards, Hotels and Holidays, and TripADeal.
Frequent Flyer membership grew to more than 18.3 million. Points earned through retail partners rose nearly 20 per cent, while points redeemed increased 17 per cent, with more than 2.5 million reward seats booked in the half.
Despite the strong result, the group reported sharp increases in airport charges and government fees, which it said had risen at double the rate of inflation over the past year. Fleet transition costs in FY26 are forecast at approximately $160 million.
Fuel costs for the second half are expected to total around $2.5 billion, inclusive of hedging and carbon costs. Depreciation and amortisation for FY26 are projected at approximately $2.25 billion, with net finance costs of around $300 million.
Qantas expects continued strong travel demand across its portfolio.
Group Domestic unit revenue is forecast to increase by around 3 per cent in the second half of FY26, while Group International unit revenue is expected to rise between 1 and 3 per cent.
Qantas Loyalty is projected to grow underlying EBIT by 10 to 12 per cent for the full year.
Capital expenditure is expected to reach between $4.1 billion and $4.3 billion in FY26 and between $5.1 billion and $5.4 billion in FY27, reflecting ongoing fleet investment. Net debt is forecast to remain at or below the midpoint of the company’s target range.
