Qantas Reports $1.46 Billion Profit, Modifies Loyalty Program, and Details Expansion Initiatives

Qantas Reports Strong Half-Year Profit Amidst Expansion and Strategic Shifts

Qantas has reported a $1.46 billion pre-tax half-year profit, marking a $71 million increase from the previous half. This robust financial performance was bolstered by several factors, including strong consumer demand for travel, moderate fuel prices, the efficiency of new aircraft, a high appetite for Qantas loyalty points, and a solid contribution from Jetstar. In recognition of these results, the board also announced a share buyback of up to $150 million.

Qantas reported a $1.46 billion pre-tax half-year profit, an increase of $71 million.

The airline also unveiled a significant evolution in its loyalty program, now allowing members to earn status credits through spending. This represents a shift from the previous model, where status credits – which offer benefits like priority boarding and increased baggage allowance – were primarily accrued by flying on Qantas aircraft.

Operational Expansion and Job Creation

Qantas is set to enhance its international network with plans for direct flights between Australia and Las Vegas. This operational growth is part of an ambitious strategy to create 8,500 new jobs in Australia by 2030. Specific recruitment targets include an additional 3,500 cabin crew and over 1,000 pilots.

To support this expansion, Qantas is establishing new cabin crew bases:

• A Qantas crew base in Singapore will initially employ 120 staff, with plans for substantial growth to 650 by 2031. These crew members will operate on flights connecting Singapore and Australia.
• Jetstar will open a new cabin crew base in Perth later this year, creating 90 roles.

These expansion plans are underpinned by a modernized fleet. The airline received six new, more efficient aircraft in the last half, with 30 more planes expected to be delivered over the next 18 months.

Airline-Union Dynamics

Qantas management has initiated efforts to improve relations with unions, with a stated aim to "reconsolidate" enterprise agreements. Transport Workers' Union (TWU) national secretary Michael Kaine acknowledged these initial steps towards open dialogue, but maintained it was "too early to deem it a totally new Qantas."

"Too early to deem it a totally new Qantas." - Michael Kaine, TWU National Secretary.

The airline's history includes significant past disputes with unions, notably the illegal dismissal of nearly 1,800 ground crew during COVID-19 shutdowns. This action resulted in a $90 million fine and $120 million in compensation payouts.

The TWU continues to express concerns regarding the establishment of new crew bases with local wages. They specifically highlighted Jetstar's existing Bali crewing hub, where conditions and pay for South-East Asia-based staff are lower than those for Australian-based crew. This issue is particularly relevant given Jetstar's strong presence in Bali travel, including 5 new routes to Bali in 2026, underscoring the strategic importance of these international hubs.

External Cost Pressures

Qantas also noted the impact of cost increases outside its direct control, such such as rising airport charges and other fee increases. The airline indicated it is actively attempting to avoid passing these additional costs on to consumers.