Qantas half-year profit nears $1.5bn, loyalty overhaul on the way

Both Qantas Domestic and Jetstar saw revenue increase in the six months to December 2025, with Domestic revenue up five per cent and Jetstar underlying EBIT up 38 per cent, though International saw a slight drop of six per cent due to higher costs.

“As we enter an exciting new era for the Qantas Group, our focus continues to be on delivering for our customers, employees and shareholders. By consistently delivering strong earnings growth we’re able to continue investing in the largest fleet renewal in our history,” said Qantas Group CEO Vanessa Hudson.

“We’re already seeing the benefits from the next generation aircraft that are flying, which along with strong demand, our dual brand strategy and expanding Loyalty business, helped us deliver another strong result.

“Despite the strong performance, we have seen a sharp increase in some costs like airport charges and Government fees, which have increased at double the rate of inflation over the past 12 months.

“We are offsetting these where possible through transformation and we’re working across the industry to address what can be done to ensure this doesn’t impact the ongoing affordability of air travel in this country.”

According to Hudson, Qantas Group’s new aircraft are “not only improving the experience for our customers and opening up new opportunities for our people, they’re also helping drive our financial performance”.

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“Around 60 per cent of Jetstar’s increase in profitability in the half was driven by its new aircraft, through a combination of growth, new network opportunities and the redeployment of existing aircraft onto other routes.

“This gives us confidence in the benefits that will flow once Qantas’ new aircraft reach scale. We’ve already started to see an acceleration in deliveries for Qantas, with six new aircraft arriving in the half and a further 30 arriving over the next 18 months.

“Some of these new aircraft will replace older aircraft, while some will support growth by opening up new routes, like the ultra long range A350s, which will operate Project Sunrise flights.”

The Flying Kangaroo has also announced a major overhaul to its Qantas Frequent Flyer (QFF) program, with members to be able to earn status credits on the ground, as well as rolling over up to 50 per cent of unused credits between years; additionally, separate status credit requirements to earn and retain a given tier will be scrapped.

According to Qantas Loyalty and Customer CEO Andrew Glance, the changes follow a “record-breaking trial” in 2025 that allowed Qantas Frequent Flyer members to earn status credits through credit cards, retail partners, and utility providers, with credits earned on the ground to also count towards lifetime tier benefits.

“Traditionally, Status Credits have been a benefit earned exclusively through flying. However last year’s trial broke member engagement records, proving they want more ways to fast-track their status,” he said.

“Making this a permanent fixture is great news for our members and also our partners, who will benefit from the increased activity this creates.

“Around half of the status credits our members earn each year are over and above their tier thresholds. We are giving value back, ensuring hard-earned status credits in one year give members a head start in the next.”

As part of the overhaul, Qantas is also set to phase out its Points Club and Green Tier programs, with their “most-valued” benefits integrated into the core QFF program.

“This will remove program complexity and the overlapping eligibility requirements of these sub-programs,” the carrier said.

“With the retirement of Green Tier, the airline will consider new ways to reward members who make sustainable choices when they fly.”

The programs will be gradually shuttered from late 2026.