Qantas anticipates its domestic unit revenue to increase by approximately 3 per cent in the first half of the 2026 fiscal year. This figure is at the lower end of previous guidance. The forecast is underpinned by robust demand from leisure travellers, small and medium enterprises, and the resources sector. Non-resource corporate demand is growing at a slower pace. Jetstar’s domestic operations continue to perform strongly. Qantas is the flag carrier airline of Australia and its largest airline by fleet size, international flights and international destinations. Through its subsidiaries, it operates regional, domestic, and international services.
International unit revenue guidance remains steady at 2 to 3 per cent growth. Capacity is slightly lower than previously anticipated due to the timing of returning A380s to service. The airline also noted that the ongoing US government shutdown has not materially affected demand. Qantas expects to increase capacity by 4 per cent across its domestic operations and 6 per cent for Jetstar. Internationally, capacity has expanded by 8 per cent, with Jetstar experiencing a 2 per cent decrease.
Qantas Loyalty is projected to deliver underlying EBIT growth of 10 to 12 per cent in the first half of 2026. Fuel costs are expected to total approximately $2.62 billion. This reflects elevated jet refining margins and additional non-cash carbon costs. The wind-down of Jetstar Asia is proceeding as planned, with an anticipated underlying EBIT loss of $30 million for the first half of 2026. Weakness in the yen has resulted in a $20 million non-cash impact for Jetstar Japan.
In other news, Qantas has appointed Alison Watkins as an independent director. Watkins currently serves on the board of the Reserve Bank of Australia, which determines interest rates, as well as on the boards of CSL and Wesfarmers.
