Qantas Airways (QAN) H1 2026 earnings summary

Executive summary

• Underlying profit before tax rose 5% year-over-year to AUD 1.46 billion ($1,456 million), with statutory profit after tax at AUD 925 million and EPS up to 68 cents; strong operating cash flow of AUD 1.8 billion and robust performance across all segments.

• Interim shareholder distribution of up to AUD 450 million announced, including a fully franked base dividend of AUD 300 million (19.8c/share) and a share buyback of up to AUD 150 million.

• Fleet renewal accelerated with AUD 1.8 billion invested, 18 aircraft added, and significant investment in customer experience.

• Customer satisfaction improved, with Net Promoter Scores rising for both Qantas and Jetstar, and on-time performance leading the domestic market.

• Workforce expanded by over 3%, with ongoing investment in staff development and new crew bases.

Financial highlights

• Revenue for 1H26 was AUD 12,896 million, up 6% year-over-year; underlying profit before tax reached AUD 1.46 billion, statutory profit after tax was AUD 925 million.

• Operating margin was 12.3%; net debt at AUD 5.6 billion, at the bottom of the FY26 target range.

• Net capital expenditure was AUD 1.8 billion, up 27%, reflecting accelerated fleet investment.

• Operating cash flow was AUD 1.8 billion, with AUD 400 million in dividends returned to shareholders.

• RASK increased 3.2% to 11.67c/ASK; total unit cost ex-fuel rose 3.3% to 11.11c/ASK.

Outlook and guidance

• Group RASK expected to increase approximately 3% in 2H26 year-over-year; international RASK to rise 1–3%.

• Qantas Loyalty EBIT expected to grow 10–12% for FY26; net freight revenue to remain stable.

• FY26 capital expenditure guidance is AUD 4.1–4.3 billion, rising to AUD 5.1–5.4 billion in FY27.

• Net debt expected at or below the middle of the target range by June 2026.

• Transformation benefits targeted at AUD 400 million for FY26.