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Team Veye   January 27, 2026

Blue chip ASX stock Qantas on earnings momentum

Team Veye   January 27, 2026
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Qantas Airways offers a compelling dividend yield supported by solid operational execution and a number of tailwinds which are set to drive earnings growth.

Qantas Airways Limited (ASX: QAN

had an impressive FY25 due to solid demand across domestic, international and loyalty segments along with disciplined cost management.

Underlying profit before tax reached $2.39 billion while statutory profit after tax stood at $1.61 billion which was supported by operating cash flow of $4.3 billion and improved operational performance across the network.
The group ended FY25 with net debt of $5.0 billion which is within its target range and the current annual dividend yield is 5.14%

Qantas returned $831 million to shareholders during FY25, comprising of $431 million in share buybacks and $400 million in fully franked dividends which highlighted the strength and sustainability of its cashflows.
Recent developments include fleet renewal with A321XLR, A220 and A321LR aircraft deliveries which are improving fuel efficiency, reliability and customer experience.

Qantas currently has a market capitalisation of $15.56 billion and trades on a P/E ratio of 9.88 which could support a rally because the next half year results are expected in February 2026 and will benefit from stronger holiday-related activity.

Fuel is expected to cost $2.62 billion in 1H26 which means any meaningful decline in energy prices would be highly beneficial as fuel represents a significant portion of operating costs.
The group reported that trading conditions in November 2025 were strong and Group Domestic unit revenue is now expected to rise by around 3% in 1H26.

International unit revenue guidance for 1H26 is unchanged at 2–3% growth and Qantas Loyalty segment is on track to deliver 10–12% underlying EBIT growth in 1H26.

(Source: Company Announcements)

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