Qantas reports strong profits in first half of fiscal year, first XLR expected in June

Qantas reported a profit of A$923 million ($579 million) in the first half of the fiscal year, up 6.2% compared to a year prior. In addition, the company reported an underlying profit before tax of A$1.3bn ($818.7 million), up 6%. 

For the first time since pre-Covid, the company will be pay dividends to shareholders, with a A$250 million ($157.4 million) base dividend (16.5 cents per share) and A$150 million ($94.4 million) special dividend (9.9 cents per share). 

“Our financial strength means we are now in a position to pay our shareholders for the first time in almost six years,” said Qantas group CEO Vanessa Hudson. 

The company took delivery of 16 aircraft, including 11 new aircraft, in the first half of the fiscal year. These consisted of six A321LRs and two A320neos for its low-cost subsidiary Jetstar, as well as three A220s for its regional brand QantasLink.

In its earnings call, Hudson said: “The 220 is an amazing vehicle that is enabling us to do more of that on mainland Australia.”

QantasLink is transitioning its fleet from 717s to the A220s. The company said the renewal will realise fuel savings. The company has 29 A220-300s on order.

The company’s first A321XLR is expected to arrive in June this year. The first XLR entered the final assembly in November 2024. The XLR will progressively replace its 737s over the next decade. A total of four XLRs are expected by the end of 2025. The company has 28 firm orders for the XLR.

The company also announced that in addition to its A330 retrofit, the company will retrofit 42 of its 737s. The improvements include new business and economy seats, larger overhead lockers, as well as a full cabin refresh.

In addition, the first Project Sunrise A350-1000 delivery is expected in the second half of 2026. Qantas ordered 12 A350-1000s for the initiative. The initiative looks to operate direct flights to Europe and New York. 

“There have been some minor delays with regards to the XLR and the Sunrise aircraft,” management said on the call. “We have a great relationship with Airbus and we’ll be working through those delays. 

The company guided a net Capex of A$3.8-3.9bn ($2.4-2.5bn) for the full fiscal year 2025 and A$4.1-4.3bn ($2.6-$2.7bn). 

Revenues for the period totalled A$12.1bn ($7.6bn), up from A$11.1bn ($7bn) a year prior. Operating expenses excluding fuel totalled A$7.1bn ($4.5bn) – up from A$6.3bn ($4bn). Total underlying expenditure totalled A$10.6bn, up from A$9.8bn. 

The company said it expects strong demand into the second half of the fiscal year. In addition, the company said it is hedging to offset the impact of the strengthening US dollar.