Qantas Reports Sharp Profit Drop as Iran-Related Fuel Surge Hits Bottom Line

Australia’s flag carrier Qantas Airways announced that its underlying pre-tax profit fell to A$2.06 billion for the year ended 30 June, the lowest level in four years. The decline was driven primarily by a surge in jet-fuel costs linked to the Iran-related conflict, which added A$420 million to expenses. Qantas said it will accelerate the retirement of its Airbus A380 fleet to 2028 and is evaluating additional orders for Airbus A350-1000 and Boeing 787 aircraft.

The Guardian

The conflict in Iran escalated in late February, prompting airlines to reroute flights through Asian hubs and pushing jet-fuel prices higher. Qantas, which had posted a record A$1.46 billion pre-tax profit for the six months to December before the war, now faces “two very different operating environments,” according to CEO Vanessa Hudson.

The Guardian

• Pre-tax profit: A$2.06 billion – Qantas.

The Guardian

• Net profit: $1.3 billion, a 19.8 % drop – Qantas.

Qantas Profit Falls 20% as US-Iran War Adds $420 Million in Costs — BigGo Finance

• Revenue: $25.5 billion, up 7 % YoY – Qantas.

The Guardian

• Fuel-cost increase: A$420 million net impact; total fuel bill expected to rise by A$1 billion in the current half – Qantas.

Qantas Profit Falls 20% as US-Iran War Adds $420 Million in Costs — BigGo Finance

• Share price reaction: Shares rose more than 4 % on the day of the announcement – market data.

Qantas Profit Falls 20% as US-Iran War Adds $420 Million in Costs — BigGo Finance

• A380 retirement: Moved forward from 2032 to 2028.

Reuters

• Fleet renewal: Up to 20 additional aircraft may be ordered from 2030, with A350-1000 and 787 models under consideration.

The Guardian

• Fare and capacity adjustments: Higher fares were applied; domestic capacity set to fall 3 % in the first half, while international capacity will rise 2 %.

The Guardian

• Jetstar fee expansion: New ancillary charges will begin with fees for overhead-locker carry-on baggage.

The Guardian

The airline adjusted fares, redeployed aircraft, and leveraged its loyalty program, contributing A$625 million to earnings. Jetstar chief executive Stephanie Tully said the carrier is confident in its outlook, citing strong forward bookings.

Reuters

• “We are not saying that everything that can be done has been done, because we’re going to continue to drive where we see demand,” — Vanessa Hudson, Qantas CEO

The Guardian

• “The A380s are now no longer in production, and so the cost of those aircraft over time will increase in terms of maintenance, but also the cost of disruptions that will come are also going to increase,” — Vanessa Hudson

Reuters

• Pre-tax profit figure: The Guardian and Reuters cite A$2.06 billion, while Biggo reports A$2.1 billion.

Qantas Profit Falls 20% as US-Iran War Adds $420 Million in Costs — BigGo Finance

• Net-profit impact: The Guardian focuses on pre-tax profit; Biggo provides a 19.8 % net-profit decline to $1.3 billion. No unified net-profit number is available.

Qantas Profit Falls 20% as US-Iran War Adds $420 Million in Costs — BigGo Finance

Qantas will retire its A380 fleet beginning in 2028 and may convert up to 20 options into firm orders for A350-1000 and 787 aircraft from 2030. The airline also expects ancillary revenue from Jetstar’s new fee initiatives to rise, supporting its target of $800 million earnings from the points business by the 2030 financial year.

The Guardian