Skyrocketing Qantas earnings reach $1.6 billion, marking a 28% surge in profits

Qantas Reports Strong Financial Results and Major Developments

Australia's national carrier, Qantas, has announced a series of significant milestones, including the resumption of dividend payments and impressive financial results for the financial year 2025 (FY25).

The airline's statutory profit after tax for FY25 stands at $1.61 billion, marking a 28% increase from the previous year. This strong performance is also reflected in Qantas Group's underlying profit before tax, which has risen 15% to $2.39 billion.

Qantas Group's dividend payout includes a base final dividend of $250 million and a special dividend of $150 million. This move marks a positive step for shareholders following a challenging period for the aviation industry.

Qantas' domestic unit saw a 5% increase in revenue, and its charter revenue was up 9%, thanks to the arrival of five additional Airbus A319 aircraft. The Qantas Group's domestic arm delivered $1.52 billion in underlying EBIT, an increase of 12% from the previous year.

Jetstar, Qantas' low-cost carrier, carried a record 16 million passengers domestically. To accommodate this growth, Jetstar Asia has ceased operations, and 13 A320 aircraft will be deployed across Australia and New Zealand services.

Qantas' Link segment, which focuses on short-haul flights, has gained five new A220s. The company claims these new additions are on track to deliver up to $9 million in additional annual EBITDA.

In a major development, direct flights from the east coast of Australia to London and New York are "a step closer to reality". The first aircraft for these long-haul routes is entering the final assembly line, with delivery expected in October next year.

However, Qantas faced a significant setback in August when it was fined $90 million for illegally sacking 1,700 ground staff. A compensation fund of $120 million was paid for all affected former employees, administered by Maurice Blackburn.

In a positive note, Qantas Group's domestic fleet renewal is expected to accelerate this year, including new aircraft with lie-flat Business class seats. The airline has also introduced a new employee share plan, which will see about 25,000 eligible non-executive employees bank $1,000 in Qantas shares annually, subject to the Group's financial performance.

Unfortunately, the details regarding the eligibility for the new share incentive have not been disclosed. The airline also experienced a major cyber breach in August, where six million customer service records were hacked by a cyber criminal targeting a call center. Qantas' shares were trading at $11.11 the night before the announcement.