Shares in Qantas experienced a significant surge at the open, climbing by more than 11 per cent after RBC Capital Markets analyst Owen Birrell provided a positive assessment of the airline’s financial performance. The analyst noted that Qantas’s FY25 result was broadly in line with expectations, with underlying profit increasing by 15 per cent to $2.39 billion. Qantas is Australia’s largest airline, operating domestic and international flights, and is also known for its frequent flyer program. The company plays a vital role in connecting people and goods across Australia and around the world.
The airline declared a final dividend of 26.4 Australian cents per share, 60 per cent franked, surpassing RBC Capital Markets’ forecast of 16.5 Australian cents. Birrell indicated a constructive outlook for FY26, anticipating growth across key segments. Specifically, Group Domestic revenue per available seat kilometre (RASK) is projected to increase by 3–5 per cent in the first half of FY26, while International RASK is expected to rise by 2–3 per cent. Qantas Loyalty’s underlying EBIT is forecast to grow by 10–12 per cent.
RBC Capital Markets highlighted mixed elements within the FY25 earnings report. While the company demonstrated strong cash conversion of 102 per cent, the results included $132 million in one-off expenses, such as costs associated with the closure of Jetstar Asia and legal provisions. Qantas Domestic EBITDA of $1.66 billion was below consensus estimates, with available seat kilometres (ASKs) decreasing by 1 per cent. Conversely, Jetstar exceeded expectations with $1.25 billion EBITDA, driven by a 17 per cent increase in ASKs.
Following the positive report and outlook, shares in Qantas jumped 12.2 per cent to $12.47, reaching a record high of $12.52 earlier in the trading session. Birrell commented that “demand remains solid across the portfolio,” supporting continued operational momentum and growth prospects for FY26.
