Qantas (ASX: QAN) FY26 Results: What Investors Need to Know

Qantas Airways Limited delivered softer financials in FY26, but what lies behind the numbers? Take a closer look at its financials and operations to find out.

Qantas Airways Limited (ASX: QAN)

On 27 August 2026, announced its June ending FY26 results, reporting an year with softer performance as underlying profit before tax decreased by $330 million to $2.06 billion, leading to a statutory profit after tax of $1.29 billion.

Operating margin for the year went down to 9.2%, with a decrease in underlying EPS of 14 cents to 96 cents per share. The company has delivered 17 new aircrafts during the year and its balance sheet remained strong during the year, with an ending cash balance of more than $13.3 billion and a net debt of $6.2 billion, which is in the target range of $5.5-6.9 billion for the year. The company has a market cap of approximately $13.72 billion with a dividend yield of 4.36%, supported by a fully franked final dividend payout of 19.8 cents per share to be paid on 14 October, reflecting management’s confidence in its operation despite slower performance.

The Middle East Conflict

The Middle East conflicts have majorly impacted the financial performance of the year, with an impact of around $420 million in pre-tax profit. The company saw strong growth during the first eight months of the year, where the company even added new aircrafts to increase the capacity and open new routes, which also helped in increasing the revenue. But during the last four months of the business, the company saw a strong downtrend in traveling as people were more concerned about the conflicts and avoiding traveling. Although the fuel bills increased by $610 million, the company tried to minimize the losses, reflecting strong operational performance despite an environment of heightened tension.

Segment Performance

Both Qantas and Jetstar continued to see strong demand in domestic travel, with a 5% increment in Qantas Domestic, supported by a 3% increase in capacity, where Jetstar Domestic showed improved growth with a 15% increase in earnings, supported by 11% increase in revenue and 4% increase in capacity.

The international segment of both Qantas and Jetstar also saw increased demand, but the overall EBIT went down by $650 million due to increased cost by Middle East conflicts. Qantas International grew 8% during the year, supported by 7% increase in capacity, and Jetstar International also increased its revenue by 14%, which is driven by 11% growth in capacity.

Surprisingly, the Qantas loyalty segment delivered a 12% growth in underlying EBIT to $625 million, as the active members grew by 6%. Overall, the company seems to have performed really well if the impact of Middle East conflicts is removed, which increased the cost during the year.

Outlook & Conclusion

Looking ahead, the company expects the fuel prices to remain elevated for the first half of FY27 due to global uncertainties. It expects the global domestic and international total unit revenue to increase by 8-10% compared to the first half of FY26, while an expected increase in the service cost of $15 million in FY27. Qantas Loyalty segment is expected to continue its earnings growth, with underlying EBIT forecasted to grow by 5-7% during the year, indicating a strong year ahead.

Although the company’s performance depleted during FY26, its strong operations along with improved customer services and continuous capacity expansion makes it an attractive opportunity for investors seeking long-term growth.

(Source: Company announcements)