Qantas to disclose if Middle East war clipped its wings

Australia's largest airline, Qantas, has reported a decline in earnings due to the impact of the Middle East war and higher jet fuel costs, resulting in a $420 million net impact on its 2025/26 profits. The company's net profit for the financial year decreased by 19.8 per cent to $1.3 billion, while its underlying pre-tax profit fell by 13.8 per cent to $2.1 billion.

Despite these challenges, Qantas carried almost 56,000 passengers, which was broadly in line with the previous year. CEO Vanessa Hudson stated that the result was strong, even with the war and fuel cost impacts. Qantas continued to see growth in the premium end of the market, while its lower-cost carrier, Jetstar, experienced further expansion, with almost half of its passengers traveling for under $150.

In response to the Middle East conflict, Qantas delayed a planned $150 million share buyback and reduced domestic capacity. The airline expects to spend $3.1 billion to $3.3 billion on jet fuel in the second half of the year, up from an original estimate of $2.5 billion. Qantas is also preparing to launch Project Sunrise, its plan for direct flights to London and New York from Australia's east coast, with the first specialized Airbus A350-1000ULR arriving in Melbourne in July 2025 and commencing flights between Sydney and London in October 2027.

Additionally, Qantas is opening a new dedicated ground training facility at its campus near Sydney Airport to teach emergency procedures to pilots and cabin crew.