Qantas Group H1 Profit Up 11% on Strong Travel Demand

Qantas Group reported robust financial results for the first half of FY25, posting an underlying profit before tax of AUD $1.39 billion (USD $882 million), an 11% increase compared to the same period last year. The strong performance is attributed to a surge in both corporate and leisure travel demand that has bolstered profitability across its domestic and international operations.

Released on February 27, 2025, the financial results highlighted that Group Domestic achieved an Underlying EBIT of AUD $916 million (USD $581.80 million), driven by a 5% rise in unit revenue. Similarly, Group International posted a 5% increase in earnings, generating an Underlying EBIT of AUD $497 million (USD $315.67 million). Although the underlying profit this fiscal period is impressive, it falls short of FY24’s record annual profit before tax of AUD $2.08 billion (USD $1.32 billion).

In addition to its earnings growth, Qantas Group ended the half-year with over AUD $11.5 billion (USD $7.31 billion) in liquidity. This strong liquidity position comprises AUD $2.3 billion (USD $1.46 billion) in cash, AUD $1.2 billion (USD $762 million) in committed undrawn facilities, and more than AUD $8 billion (USD $5.08 billion) in unencumbered fleet assets. These financial reserves provide a solid foundation for future investments and strategic initiatives.

The airline’s performance was underpinned by its dual brand strategy, which has consistently met strong travel demand across all customer segments. Both Qantas and its low-cost subsidiary Jetstar have experienced increased profitability, serving nearly 10% more customers than the previous year. Premium and corporate travel remain a key strength for Qantas, while Jetstar has delivered a record number of passengers along with a remarkable 54% increase in domestic earnings compared to the prior year.

A significant factor in Qantas Group’s success this half-year was fleet expansion and renewal. The group added 11 new aircraft and five mid-life jets during the period. Notably, the introduction of Jetstar’s new Airbus A321LRs and A320neos has expanded its fleet to 21 modern jets. Additionally, Qantas is renewing its fleet with five Airbus A220s currently in service, a move that will be complemented by a major cabin overhaul across existing aircraft to enhance passenger comfort and efficiency.

Qantas Loyalty also demonstrated strong performance, driven by increased member engagement and rising inflows from partners, which grew by 11% and 18% respectively. The company rewarded 27,000 non-executive employees in December 2024 with an AUD $1,000 (USD $635.15) bonus as a token of appreciation for their contributions.

Despite rising engineering costs and increased airport and government charges, the company’s strategic investments in fleet modernization and customer service continue to pay off. For the first time since FY19, Qantas Group declared a dividend, announcing both an AUD $250 million (USD $158.79 million) base dividend and an AUD $150 million (USD $95.35 million) special dividend, fully franked at 26.4 cents per share.

Looking ahead to the second half of FY25, Qantas expects strong travel demand to continue. Group Domestic unit revenue is forecast to rise 3–5%, and net freight revenue is projected to increase by AUD $10–30 million compared to the same period last year. These projections, coupled with the airline’s ongoing strategic initiatives, position Qantas Group for a promising and prosperous second half of the fiscal year.

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