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Qantas Profit Soars on New Fleet, Buyback Boosts Shares
26 Feb
Summary
- Qantas profit climbed 5.1% to A$1.46 billion in six months.
- New, fuel-efficient aircraft are increasingly replacing older planes.
- Company announced a share buyback of up to A$150 million.
Qantas Airways announced a profit increase of 5.1% to A$1.46 billion for the six months ending December 31, exceeding analyst expectations. This growth is significantly attributed to the introduction of new, more fuel-efficient Airbus aircraft that are progressively replacing the airline's aging domestic fleet.
The Australian carrier also revealed a share buyback program of up to A$150 million. CEO Vanessa Hudson highlighted the benefits already realized from the next-generation aircraft, noting their contribution to Jetstar's profit increase in the period. Nine new aircraft were delivered to the Qantas group in the first half.
However, a softening in post-pandemic travel demand was observed late last year, leading Qantas to scale back planned capacity growth in Australia for the first six months of 2026. This adjustment followed slower-than-anticipated corporate demand.
While demand for flights from the US to Australia has risen, it has not compensated for reduced economy-class demand on services from Australia to the US. Qantas has modified schedules to align with these shifts and will continue monitoring the economic environment in the US.
A significant future development will be the arrival of the airline's first Airbus A350 aircraft later in 2026. These long-range planes are slated to operate ultra-long-haul flights connecting Sydney with London and New York starting in 2027.
