Qantas shares have plummeted to their lowest level in over two months following the announcement of an interim dividend of 19.8¢, which fell short of market expectations. The airline also reported underlying and statutory profits that missed consensus estimates, further contributing to investor unease. Shares in Qantas were down by 5.3 per cent, marking their lowest point since mid-December.
According to IG market analyst Tony Sycamore, an initial positive reaction at the market open quickly turned negative as investors grappled with the profit misses and management’s commentary. Sycamore highlighted concerns about rising airport charges, government fees, and other costs outpacing inflation, which raises questions about the airline’s future margin sustainability. He suggested that Qantas may test key uptrend support near $10.00 before any stabilisation occurs.
RBC Capital Markets analyst Owen Birrell noted that while domestic operations performed broadly as expected, international performance lagged behind. This was partially offset by strong earnings from Jetstar, where 60 per cent of the improvement was attributed to new aircraft driving efficiency gains. Birrell also pointed out that one-off expenses, such as Jetstar Asia closure costs and provisions for a cyber incident, negatively impacted statutory profit. Additionally, net capital expenditure increased by 27 per cent to $1.8 billion.
Qantas is Australia’s largest airline and flag carrier, providing domestic and international air transportation services. The company connects Australia to the world and also operates a low-cost carrier, Jetstar, for budget-conscious travelers.
