Business & Finance
Qantas annual profit drops to four-year low amid surge in fuel costs
Higher fuel prices linked to Middle East conflict weigh on earnings, while the airline plans to phase out its Airbus A380 fleet.
The short version
- Qantas recorded a pre-tax annual profit of $2.06 billion for the year through June, its lowest result in four years.
- Higher jet fuel prices driven by the conflict involving the U.S. and Iran added $610 million to fuel costs, causing a net negative impact of $420 million.
- The airline announced it will retire its Airbus A380 fleet to prepare for new aircraft models.
Key facts
- Qantas reported a pre-tax profit of $2.06 billion for the fiscal year ending in June, down $330 million from the prior year.[The Guardian]
- Increased fuel costs driven by the Middle East conflict added $610 million in expenses, which was partially offset by $190 million in revenue from passengers switching to Qantas after competitor cancellations.[The Guardian]
- Qantas plans to phase out its Airbus A380 fleet as it introduces new aircraft into service.[The Guardian]
- Earnings for the loyalty division rose 12% to $625 million, supported by a 6% increase in active members.[The Guardian]
What remains uncertain
- The full financial benefit and customer impact of Jetstar's upcoming carry-on baggage fee changes remain unquantified by airline leadership.[The Guardian]