Qantas Surges to $1.6B Profit, Declares $650M Dividends, Shuts Jetstar Asia

Strong Financial Recovery and Growth

Qantas Airways Limited has delivered a compelling financial performance for the fiscal year ended June 30, 2025, reflecting a solid recovery and growth trajectory post-pandemic. The Group reported an underlying profit before tax of $2.394 billion, marking a 15.2% increase from the previous year. Statutory profit after tax surged 28.3% to $1.605 billion, underscoring the strength of Qantas’ integrated portfolio and operational execution.

Revenue and other income rose by 8.6% to $23.8 billion, driven by an 8% increase in available seat kilometres, predominantly from international flying and the progressive return of the A380 fleet. The Group’s operating margin improved to 11.1%, supported by disciplined cost management and a favourable fuel price environment.

Dividends and Shareholder Returns

Reflecting confidence in its cash flow and financial position, Qantas declared fully franked dividends totaling $650 million for FY25. This includes a base dividend of $250 million and a special dividend of $150 million paid in April 2025, with a matching final dividend and special distribution announced in August 2025 to be paid in October. Additionally, the Group completed on-market share buy-backs amounting to $431 million, purchasing 55 million shares at an average price of $7.82, further enhancing shareholder value.

Strategic Fleet Renewal and Operational Highlights

Capital expenditure reached $3.85 billion, primarily invested in fleet renewal and customer experience enhancements. The Group took delivery of new aircraft including the first A321XLR, multiple A321LRs, A320neos, and A220-300s, while retiring older models to improve fuel efficiency and reduce emissions. Jetstar’s fleet modernization contributed to record earnings, with a 17% capacity increase and a 13.5% operating margin.

Qantas Domestic and International operations both showed resilience, with domestic underlying EBIT stable at $1.056 billion and international EBIT rising 7% to $596 million. The Group expanded its international network with new routes such as Perth-Paris and Brisbane-Palau, while premium cabin demand remained robust.

Jetstar Asia Closure and Legal Provisions

As part of a strategic restructure to focus on core markets and fleet renewal, Jetstar Asia ceased operations on July 31, 2025. The closure incurred an underlying EBIT loss of $33 million and additional closure costs recognized outside underlying profit. This move aligns with Qantas’ strategy to recycle capital and strengthen its competitive position.

The Group also recognized material legal provisions related to regulatory penalties and industrial relations matters. Notably, a $90 million pecuniary penalty was imposed post-balance sheet date concerning ground handling outsourcing, alongside prior ACCC penalties and remediation programs totaling $120 million. These provisions highlight ongoing regulatory risks in the aviation sector.

Risk Management and Future Outlook

Qantas continues to actively manage risks including fuel price volatility, foreign exchange fluctuations, cyber security threats, and competitive pressures. Investments in customer experience, operational reliability, and sustainability remain priorities, with clear climate targets and fleet modernization efforts underway. The Group’s net debt of $5.0 billion remains within its targeted range, supporting financial flexibility for future growth.

Looking ahead, Qantas’ disciplined financial framework, strategic capital allocation, and focus on core markets position it well to navigate evolving industry dynamics and deliver sustained shareholder returns.