Markets
Qantas absorbs $610m fuel surge as domestic and loyalty earnings soften blow
Higher fuel costs reduced international earnings to $650 million, while domestic flying generated $1.44 billion in underlying profit.
Reported from qantasnewsroom.com.au→ — read the original alongside this account.
Qantas absorbed a $610 million surge in fuel costs during the 2026 financial year, as conflict in the Middle East and economic uncertainty disrupted travel patterns.
Chief executive Vanessa Hudson said fare changes, network adjustments and capacity shifts limited the net impact on earnings to $420 million. Group International underlying earnings before interest and tax fell to $650 million, while Group Domestic produced $1.44 billion.
Qantas Loyalty earnings rose 12 per cent to $625 million. The airline agreed to revised commercial terms and extended contracts with major credit card partners following the Reserve Bank of Australia's review into card payment costs and surcharging.
The carrier plans to begin receiving its ultra-long-range Airbus A350-1000ULR aircraft in April, aiming for non-stop Sydney to London flights in October. The existing Airbus A380 fleet will be phased out starting in calendar year 2028.
Around 25,000 non-executive staff will receive $1,000 in company shares under an employee share plan.