Overview
- Qantas released full-year FY26 results on Thursday showing underlying profit before tax of A$2.06 billion and a statutory net profit of A$1.29 billion, both down from the prior year.
- The airline said a surge in jet fuel refining margins pushed second-half fuel costs up by about US$610 per barrel equivalent, and that mitigation measures limited the net earnings hit to roughly A$420 million.
- To offset costs Qantas paused a planned A$150 million on-market buyback, approved a fully franked A$300 million final dividend, adjusted fares and capacity, redeployed aircraft to higher-demand routes, and used crude hedges.
- Qantas warned fuel costs will remain high and estimated first-half FY27 fuel expenses at about A$3.6 billion while confirming continued fleet investment and Project Sunrise on track for A350‑1000ULR delivery in April 2027.
- Markets reacted positively to the updates with Qantas shares rising about 4 percent, while rival Virgin cited broader hedging of refining margins for stronger FY26 results and some passengers and corporate travellers faced trimmed domestic capacity.