Qantas Group reported underlying profit before tax of $1.46 billion for the first half of FY2026, up 5% year-over-year, with underlying earnings per share at 68 cents, a 7% increase. Statutory profit after tax stood at $925 million, while revenue reached $12.9 billion, up 6% from 1H25.
Operating cash flow remained robust at $1.8 billion, supporting the board’s approval of an interim shareholder distribution totaling up to $450 million. This includes a fully franked base dividend of $300 million, increased by $50 million, and an on-market buyback of up to $150 million. Net debt closed at $5.6 billion, at the bottom of the FY26 target range of $5.6-7.0 billion.
Group capacity grew 4% with revenue per available seat kilometer up 3%, driven by demand strength in premium and point-to-point markets. Domestic unit revenue rose 3%, while international saw 2% RASK growth on 5% capacity expansion. Jetstar’s Australian domestic network contributed $372 million in underlying EBIT, with 14% revenue growth.
Fleet renewal played a key role, with investments including $1.8 billion in net capital expenditure. The program features over 200 new aircraft orders, A380 reactivation for routes like Dallas, Embraer E190s replacing Fokker 100s, and cabin upgrades on A320/A319 fleets with Wi-Fi and new seats. These enhancements improve fuel efficiency, reliability, and passenger experience, offsetting higher costs amid strong travel demand.
Qantas targets $400 million in transformation savings for FY26, with Loyalty EBIT growth of 10-12% and sustained dividends.