Qantas Accelerates Growth with $3.9B Fleet Renewal and Record Profits
Qantas reports a robust FY25 with a 15% rise in underlying profit and announces a major order for 20 new A321XLR aircraft, signaling a bold expansion of its domestic and international fleet.
- Underlying profit before tax up 15% to $2.39 billion
- Orders 20 additional A321XLR aircraft, 16 featuring lie-flat business seats
- Resumes dividends with a fully franked $400 million payout
- Jetstar achieves record domestic passengers and earnings growth
- Sustainability investments expand with increased Sustainable Aviation Fuel usage
Strong Financial Performance and Strategic Growth
Qantas Airways has delivered a compelling FY25 financial performance, with underlying profit before tax climbing 15% to $2.39 billion and statutory profit after tax surging 28% to $1.61 billion. This robust result reflects the airline’s successful navigation of a complex operating environment marked by rising costs and evolving customer demands.
The group’s CEO, Vanessa Hudson, highlighted the dual brand strategy’s effectiveness, with Qantas and Jetstar collectively carrying four million more passengers year-on-year. Jetstar’s fleet renewal and value-driven approach notably boosted earnings, particularly in a challenging cost-of-living climate.
Fleet Expansion and Modernisation
Central to Qantas’ growth story is its commitment to fleet renewal. The airline has placed an order for 20 additional Airbus A321XLR aircraft, 16 of which will be equipped with lie-flat business seats, enhancing premium travel options. This move underscores Qantas’ ambition to modernise its domestic and medium-haul international fleets, with the first A321XLRs expected to enter service imminently.
Alongside this, Qantas is advancing Project Sunrise, with the first ultra-long-haul A350-1000ULR aircraft entering final assembly and scheduled for delivery in October 2026. These aircraft will enable non-stop flights from Australia’s east coast to London and New York, positioning Qantas at the forefront of ultra-long-haul travel innovation.
Operational Excellence and Customer Experience
Operational metrics have improved markedly, with Qantas achieving its best on-time performance since 2019 and Jetstar recording a seven-year low cancellation rate. Customer satisfaction also rose significantly, reflected in double-digit increases in Net Promoter Scores for both airlines.
Investments in lounges, inflight technology, and loyalty program enhancements have further enriched the customer experience. The Qantas Loyalty program saw a 9% increase in underlying earnings, driven by higher member engagement and expanded partnerships with major Australian brands.
Sustainability and Community Commitments
Qantas continues to prioritise sustainability, with over $100 million committed through its $400 million Climate Fund to Sustainable Aviation Fuel (SAF) and decarbonisation projects. The airline has expanded SAF usage at key international airports and is actively collaborating with government and industry to develop a domestic SAF supply chain.
Community engagement remains strong, with new partnerships supporting volunteer training and regional travel discounts, reinforcing Qantas’ role as a socially responsible corporate citizen.
Looking Ahead
Despite ongoing cost pressures from wage legislation and infrastructure charges, Qantas projects continued revenue growth in FY26. The airline plans to accelerate its domestic fleet renewal and maintain its focus on operational efficiency and customer satisfaction. The upcoming delivery of new aircraft and expansion of ultra-long-haul services will be critical to sustaining momentum.
Bottom Line?
Qantas’ FY25 results and fleet expansion set the stage for a transformative era, but rising costs and regulatory challenges warrant close investor attention.
Questions in the middle?
- How will Qantas manage rising costs from Same Job Same Pay legislation and airport charges?
- What impact will the new A321XLR aircraft have on Qantas’ competitive positioning domestically and internationally?
- How quickly can Qantas scale Sustainable Aviation Fuel usage and what are the implications for long-term sustainability goals?
