Qantas Shares Hit Record High as Profits Jump on Strong Travel Demand

Sydney  — Qantas Airways shares surged to a record high on Thursday after the Australian flag carrier posted full-year earnings that beat expectations, buoyed by resilient travel demand across its domestic and international networks.

The stock climbed as much as 13.6% in early trading before settling about 9% higher by midday. The rally followed Qantas reporting a 15% jump in underlying profit before tax to A$2.39 billion ($1.6 billion) for the year ended June 30, topping analyst estimates of A$2.38 billion. Revenue rose 8.6% year-on-year to A$23.82 billion.

The airline announced a final dividend of 16.5 Australian cents per share and a special payout of 9.9 cents, taking its total dividends for the year to 33 cents, the largest annual payout in 17 years.

Chief Executive Vanessa Hudson credited the strong results to robust demand and Jetstar’s exceptional performance. The budget airline recorded a 55% earnings increase, flying a record 16 million domestic passengers. Fleet renewal efforts, she added, were key to Jetstar’s standout performance, even as Qantas closed Jetstar’s Asia operations in July amid rising costs and competition.

“The closure of Jetstar Asia supports the Qantas Group’s strategy of recycling capital to improve long-term returns, support fleet renewal, and strengthen core markets,” the airline said in a statement.

Qantas also announced an order for 20 Airbus A321XLR aircraft, including 16 with lie-flat business class seats, underscoring its push toward premium narrow-body capacity. However, Hudson cautioned that rising costs, including some exceeding inflation, had offset the benefits of lower fuel prices.

The upbeat financial results come just days after Qantas was fined A$90 million ($59 million) by an Australian court for illegally dismissing 1,800 ground staff during the Covid-19 pandemic. Despite the penalty, investor sentiment appears undeterred as the airline signals strong growth ahead.