Iran war costs Qantas $420m in 2026 financial year

“This has been another year of progress, with customer satisfaction at its highest in a decade and world-leading operational performance, even as the aviation industry faced record high fuel costs and disruption from the conflict in the Middle East,” said Qantas Group CEO Vanessa Hudson.

“We came through it with a strong result, which is what allows us to continue investing in the largest fleet renewal in our history and deliver more for our customers, people and shareholders.”

Qantas Group Domestic delivered $1.44 billion in Underlying EBIT, with Qantas Domestic revenue up five per cent and Jetstar Domestic earnings up 15 per cent.

Qantas International revenue grew eight per cent and Jetstar International by 14 per cent, though “significantly higher fuel costs” saw Group International Underlying EBIT decline to $650 million; net freight revenue also increased by nine per cent.

According to Hudson, the year was “defined by two very different operating environments, as a result of the conflict in the Middle East”.

“In the first half, Qantas and Jetstar were both performing strongly, with demand growing across the domestic and international networks. Our new aircraft allowed us to add capacity and open new routes, which helped us to increase revenue,” she said.

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“Qantas continued to see growth at the premium end of the market while Jetstar went from strength to strength and continued to deliver value, when many are feeling cost of living pressures. This performance highlights the benefits of our dual brand strategy.

“The final four months of the year saw business and consumer confidence fall as the conflict and economic headwinds created uncertainty, and some large corporates and Government responded by managing their costs more tightly, reducing demand for travel.

“In response to the surge in fuel prices, we quickly adjusted fares and capacity, and redeployed aircraft to give customers more options to fly to Europe. These actions, along with other mitigations, limited the net impact on earnings to $420 million, despite a $610 million increase in our fuel bill.”

Qantas said its outlook is positive, with “resilient” international and domestic demand, though the group is expecting a $3.6 billion fuel bill in the first half of FY27, with fuel costs remaining high.

“Transformation continues to be a priority, helping offset rising costs so we can keep investing in our business for the future,” said Hudson.

“With cost pressures set to continue, transformation will help us manage these increases and keep delivering for our customers and our people, including through the increased use of technology and AI.

“There is a lot for our customers to look forward to. This year we’ll begin direct flights from Sydney to Las Vegas, reopen the Sydney International Business Lounge, continue to upgrade Jetstar’s 787s and have Wi‑Fi available on the vast majority of Qantas International flights.”

Around 2,500 non-executive employees are also set to receive $1,000 in company shares.