The Qantas Group has delivered a robust full-year result for FY25 with Jetstar, its low-cost carrier, seeing its underlying earnings before tax surging by 55% to $900 million after carrying a record 16 million domestic passengers.
The Group as a whole saw a 15% increase in underlying profit before tax to USD 2.39 billion, a performance the company attributes to strong travel demand and the success of its dual-brand strategy.
The results were announced today (August 28) alongside an order for 20 additional Airbus A321XLR aircraft, a key component of the Group’s ongoing fleet renewal program.
Qantas Group CEO Vanessa Hudson said that Jetstar’s fleet renewal, which includes new A321LRs and A320neos, is providing significant fuel efficiency and network growth, and has been a major contributor to its strong earnings.
Beyond Jetstar, the fleet renewal program extends to Qantas and its regional subsidiaries. The Group’s firm aircraft order now stands at 214, representing a multibillion-dollar investment.
In addition to the new A321XLRs, the Group is taking delivery of new A220s for QantasLink, its regional airline. These aircraft are designed to unlock new routes and offer improved efficiency.
Qantas is also investing in mid-life A319s and Q400s to support the growth and renewal of its regional fleet, including services for the critical resources sector.
The Group’s strategy is designed to segment and grow the market, with Qantas targeting premium travelers and Jetstar catering to the price-sensitive leisure market. The success of this approach is reflected in the Group’s domestic earnings, which delivered USD 1.52 billion in underlying earnings before income tax, and its international segment, which saw a 2 per cent point increase in seat factors in premium cabins.
The company’s strong financial position has also enabled it to announce a new share plan for approximately 25,000 non-executive employees, who will each receive USD 1,000 in shares.
The report also highlighted the Group’s commitment to sustainability, with investments in Sustainable Aviation Fuel and a new goal to reduce net emissions by 25 per cent by 2030.
IMAGE: Jetstar
Jetstar has revealed a surge in profits for FY25
