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Qantas Profit Falls as War-Driven Fuel Spike Hits Earnings

The carrier says the USIran conflict pushed refining costs for jet fuel sharply higher, costing it hundreds of millions and prompting hedging, capacity changes and a paused A$150 million buyback.

Overview

  • Qantas reported full-year results for the year to June 30 showing net profit down 19.7% to A$1.29 billion and underlying pre-tax profit down about A$330 million to A$2.06 billion.
  • The airline said the US‑Iran war drove jet‑fuel refining margins from roughly US$20 a barrel in February to about US$120 at peak, increasing its fuel bill by roughly $600 million in the second half and costing the company more than $420 million after mitigations.
  • In response to the fuel shock Qantas adjusted fares, trimmed some domestic capacity, redeployed aircraft to capture displaced Europe demand, and suspended a planned A$150 million on‑market share buyback.
  • Management forecast elevated jet fuel costs through the July–December period and said it will increase hedging and other mitigations while maintaining liquidity and continued fleet investment.
  • Qantas said demand remained resilient with group revenue up to A$25.5 billion, it added 17 aircraft in the year, and it is proceeding with Project Sunrise A350‑1000ULR deliveries and scheduled route launches despite the near‑term margin pressure.