The Qantas Group has reported a strong financial and operational performance for the 2025 financial year, underpinned by continued travel demand, dual-brand strategy benefits, and major investments in fleet renewal and customer initiatives.
Key Updates
Fleet Expansion: Qantas has ordered 20 additional Airbus A321XLR aircraft, with 16 to feature lie-flat Business Class seats (details in a separate release). The Group’s domestic fleet renewal will accelerate this year, with Qantas set to be the first Asia-Pacific airline to operate the A321XLR when its first aircraft enters service in September 2025.
Employee Rewards: Around 25,000 non-executive employees will receive $1,000 in Qantas shares annually under a new share plan, in addition to a one-off $1,000 “Thank You” payment made in December 2024.
Operational Improvements: Both Qantas and Jetstar achieved their best on-time performance since 2019, with Qantas named the most punctual major domestic airline in FY25.
CEO Commentary
Qantas Group CEO Vanessa Hudson said FY25 was “all about delivery,” highlighting stronger earnings across Qantas, Jetstar, and the Loyalty program. She emphasised that fleet investment, service improvements, and new customer initiatives are boosting reliability and satisfaction, while also acknowledging rising cost pressures from wages, infrastructure charges, and regulatory changes.
Hudson also pointed to major milestones ahead, including Project Sunrise ultra long-haul flights to London and New York, with the first Airbus A350-1000ULR now entering final assembly and expected for delivery in October 2026.
Segment Performance
Group Domestic
Delivered $1.52 billion in underlying EBIT, up 12% year-on-year, with a 14% margin.
Qantas Domestic revenue grew 5%, driven by higher seat factors, stronger corporate travel, and yield improvements.
Fleet updates included five A319s for resources charters and five new A220s for QantasLink, replacing older 717s.
Jetstar carried a record 16 million domestic passengers, lifting EBIT by 55%, supported by new aircraft, higher demand, and strong value offerings.
Closure of Jetstar Asia will see its 13 A320s redeployed across the Australian and New Zealand operations.
Group International and Freight
International EBIT rose 20% to $903 million.
Qantas International grew capacity by 6%, supported by the return of an A380 and high premium-cabin demand.
Jetstar launched 11 new international routes and expanded strongly into Asia, supported by the delivery of new A321LR and A320neo aircraft.
Freight revenue rose 7% year-on-year, with preparations underway for operations at Western Sydney Airport’s new 24-hour cargo hub from 2026.
Qantas Loyalty
EBIT grew 9% to $556 million.
Frequent Flyer engagement hit record levels, with 10% more points earned and 8% more redeemed.
New initiatives, including Classic Plus reward seats and lower-cost Jetstar Classic Rewards, boosted program activity.
New retail partners, including David Jones, expanded earning and redemption options.
Investment in Customer and Operations
17 new aircraft delivered in FY25.
On-time performance reached 82% for Qantas and 76% for Jetstar in the second half. Jetstar also recorded its lowest cancellation rate in seven years.
Qantas’ Net Promoter Score improved by 10 points, Jetstar’s by 6 points.
Customer upgrades included new lounges (Adelaide, Broome), lounge refurbishments (Sydney, LA, Auckland), and fast, free international Wi-Fi.
People and Engagement
Employee engagement improved by 7 points, now above the global industry benchmark.
New technology and training initiatives supported operational performance.
Sustainability and Community
The Group advanced its $400m Climate Fund, with over $100m committed to Sustainable Aviation Fuel (SAF) and decarbonisation projects.
Expanded SAF usage includes a 100m litre supply agreement from Los Angeles and a large-scale import into Sydney Airport.
Community partnerships were strengthened, including new agreements with Surf Life Saving Australia and the Australian Red Cross.
Financials and Shareholder Returns
Liquidity of $12.2 billion, including $2.2b cash.
Net debt rose to $5.0 billion, within the target range.
Net capital expenditure totalled $3.9 billion due to accelerated fleet renewal.
Shareholder returns: $800m in dividends for FY25, including a $250m base final dividend and a $150m special dividend.
Challenges
Rising costs in engineering, supply chain, wages, and infrastructure charges continue to pressure margins.
Cybersecurity incident in June affected 5.7 million customers; mitigation and support measures are ongoing.
Ground handling legal case from 2020 outsourcing has been settled, with $120m compensation paid to affected workers.
Outlook
Qantas expects continued strong demand in FY26, with:
Domestic unit revenue up 3–5%, International up 2–3% in 1H26.
Loyalty EBIT growth of 10–12%.
Fleet transition costs to rise to $160m in FY26 as new A321XLRs are introduced.
Transformation program targeting $400m in benefits to offset cost inflation.
Project Sunrise flights to launch by 2027, positioning Qantas as the first carrier to offer non-stop east coast Australia–Europe/US services.