Qantas Declares Fully Franked AUD 0.264 Dividend for FY25 H1
Qantas Airways has announced a fully franked dividend of AUD 0.264 per share for the first half of FY25, reflecting confidence in its financial position amid ongoing industry recovery.
- Total dividend of AUD 0.264 per share, fully franked
- Dividend split into AUD 0.165 ordinary and AUD 0.099 special dividend
- Ex-dividend date set for 16 September 2025
- Payment scheduled for 15 October 2025
- Dividend reinvestment plan not applicable for this payment
Qantas Announces Dividend Details
Qantas Airways Limited has declared a fully franked dividend of AUD 0.264 per ordinary share for the six months ending 30 June 2025. This dividend is composed of an ordinary dividend of AUD 0.165 and a special dividend of AUD 0.099, both fully franked at the corporate tax rate of 30%. The announcement was made on 28 August 2025, with the ex-dividend date set for 16 September and the payment date scheduled for 15 October 2025.
Implications for Shareholders
The fully franked nature of the dividend means shareholders will receive a credit for the tax already paid by Qantas, enhancing the after-tax return on their investment. The dividend reinvestment plan (DRP), which allows shareholders to reinvest dividends into additional shares, will not be applicable for this payment, signaling a preference for cash distribution this period.
Currency and Payment Arrangements
Qantas has outlined currency arrangements that accommodate shareholders in Australia and New Zealand. Payments will be made in Australian dollars by default, but New Zealand shareholders with appropriate banking instructions will receive their dividends in New Zealand dollars, calculated using the exchange rate at 5, 00 pm AEST on the record date. This flexibility reflects Qantas’s attention to its diverse shareholder base across the region.
Context Within FY25 Financial Performance
This dividend announcement follows the release of Qantas’s FY25 preliminary final report and investor presentations, which provide further insight into the company’s financial health and operational performance. The decision to pay a special dividend alongside the ordinary dividend suggests a strong cash flow position and confidence in ongoing profitability, despite the challenges faced by the airline industry in recent years.
Looking Ahead
While the dividend payment is a positive signal, investors will be keen to see how Qantas navigates the remainder of FY25, particularly in terms of sustaining dividend levels and managing costs amid fluctuating fuel prices and evolving travel demand. The company’s broader strategy and outlook will be clearer once the full FY25 results and detailed investor presentations are reviewed.
Bottom Line?
Qantas’s fully franked dividend underscores resilience but raises questions on future payout sustainability amid industry volatility.
Questions in the middle?
- Will Qantas maintain or increase dividend payouts in the second half of FY25?
- How will currency fluctuations impact dividend payments for international shareholders?
- What operational strategies underpin Qantas’s ability to pay a special dividend now?
