Qantas Airways reported an underlying profit before tax of A$2.06 billion ($1.48 billion) for the year ending June 30, which exceeded analyst expectations by about 3%. The airline noted a significant 15% increase in international premium cabin revenue, outpacing the growth of economy revenue.
This surge in demand for premium travel has prompted Qantas and its low-cost subsidiary Jetstar to expand capacity and increase unit revenue, despite facing higher fuel costs that impacted international earnings.
The airline's new business-class suites for its Airbus A321XLR fleet, featuring lie-flat beds and privacy doors, are set to debut in 2028, alongside updated seats for its Boeing 787-9 Dreamliners. Looking ahead, Qantas anticipates an 8% to 10% rise in both domestic and international unit revenue for the first half of fiscal 2027, even as fuel costs are projected to rise.
Citi has maintained a 'buy' rating on Qantas, highlighting the strong performance of Jetstar and the Qantas Loyalty program as key drivers of growth