Breaking : Qantas Delivers $800M in Dividends, Expands Fleet With 20 Airbus A321XLR Jets

Aug 27, 2025

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Qantas has posted strong financial results for the 2025 financial year and announced an order for 20 additional Airbus A321XLR aircraft, expanding its domestic and international fleet as the airline moves to strengthen growth and reliability after years of disruption.

The carrier will fit 16 of the new aircraft with lie-flat Business seats, making it the first airline in the Asia-Pacific region to operate the aircraft type on domestic routes. The order was unveiled Thursday alongside the airline’s full-year results.

“For everyone across the Qantas Group, this year has been all about delivery,” Qantas Group Chief Executive Officer Vanessa Hudson said in a statement. “While we are pleased with the progress we are making, we remain focused on further improving our performance and continuing to deliver for our customers, people and shareholders.”

Hudson said continuing strong demand across all market segments, combined with Qantas’ dual brand strategy with Jetstar, helped earnings grow. “Qantas and Jetstar carried four million more customers during the year, while our Loyalty business grew as frequent flyers engaged with the program more than ever before,” she said.

Record Dividends and Staff Rewards

Qantas announced it will pay shareholders a base final dividend of $250 million and a special dividend of $150 million, bringing total dividends for the year to $800 million. The airline also confirmed that about 25,000 non-executive employees across the group will receive $1,000 in Qantas shares annually as part of a new employee share plan, in addition to a one-off “Thank You” payment already distributed in December 2024.

“I want to thank our people who serve our customers with passion every day. They are the real stars of our performance and we are introducing a new employee share plan so they can share in our success,” Hudson said.

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Domestic Operations

The Group’s domestic business delivered $1.52 billion in underlying earnings before interest and tax (EBIT), up 12% from the prior year, at a margin of 14%. Qantas Domestic unit revenue increased 5%, with a 3.5 percentage point improvement from higher seat factors and business travel, and 1.5 percentage points from yield improvements. Charter revenue grew 9%, supported by five additional Airbus A319 aircraft servicing Western Australia’s resources sector.

QantasLink took delivery of five new Airbus A220s during the year, with each expected to deliver up to $9 million in additional annual earnings before interest, tax, depreciation and amortisation (EBITDA) compared with the older Boeing 717s they replaced. The regional airline has now retired all Q200 and Q300 aircraft, transitioning to an all-Q400 turboprop fleet.

The first two A321XLRs are scheduled to enter service on Qantas’ domestic network in mid-September, making Qantas the first Asia-Pacific airline to fly the new aircraft type.

Jetstar carried a record 16 million passengers domestically, helping boost its underlying EBIT by 55%. Its improved performance was attributed to new aircraft, a 2 percentage point increase in seat factors, and lower fuel costs. Jetstar also closed Jetstar Asia in July, with its 13 A320 aircraft set to be redeployed across Jetstar Australia, Jetstar New Zealand, and QantasLink.

International Growth and Project Sunrise

Group International reported a 20% improvement in underlying EBIT to $903 million, with Qantas International capacity up 6%. The carrier brought another Airbus A380 back into service, while demand for premium cabins drove a 2 percentage point increase in seat factors across First, Business and Premium Economy.

Hudson confirmed that preparations for Qantas’ long-awaited Project Sunrise remain on track. The program will launch non-stop flights from Australia’s east coast to London and New York using Airbus A350-1000ULR aircraft. “Direct flights from the east coast of Australia to London and New York are also a step closer to reality, with the first Project Sunrise A350-1000ULR aircraft to enter the final assembly line in the coming months, and the first aircraft delivery expected in October next year,” Hudson said.

Jetstar also saw strong international performance, carrying about 25% more customers year on year. The airline launched 11 new international routes, supported by seven new Airbus A321LR and four A320neo aircraft.

Net freight revenue increased 7% year on year, bolstered by simplification of Qantas Freight’s fleet and preparations for new operations at Western Sydney Airport’s 24-hour cargo precinct in 2026.

Qantas Loyalty Growth

Qantas Loyalty achieved 9% growth in underlying EBIT to $556 million. Frequent Flyer members earned 10% more Qantas Points and redeemed 8% more compared to last year. The program recorded a milestone with more than one million Classic Plus reward seat bookings since its launch in December, with about one in three used during peak school holiday periods.

Jetstar Classic Reward Seat bookings also increased after the introduction of Australia’s lowest one-way Economy reward seat at 5,700 points.

Australian retailer David Jones joined the Qantas Loyalty program this year, while Woolworths Group extended its partnership beyond 2030.

Customer Investments

The Group invested heavily in customer initiatives, adding 17 new aircraft to its fleet and achieving its best on-time performance since 2019. Qantas recorded 82% on-time departures in the second half, while Jetstar improved to 76% with a cancellation rate under 2%, its best in seven years.

Customer satisfaction rose, with Qantas’ Net Promoter Score improving by 10 percentage points and Jetstar’s by 6. Qantas also won Best Airline in Australia/Pacific at the 2025 Skytrax World Airline Awards.

The airline opened new lounges in Adelaide and Broome and began major upgrades to its Sydney International, Los Angeles Business, and Auckland lounges. Qantas also activated free international Wi-Fi on Southeast Asia and trans-Tasman routes.

People and Engagement

The airline reported a 7 percentage point rise in employee engagement, four points above the global transport industry average. Alongside the new share plan, Hudson highlighted training, development, and technology upgrades to improve staff efficiency.

Sustainability Initiatives

Through its $400 million Climate Fund, Qantas has committed over $100 million to Sustainable Aviation Fuel (SAF) and other decarbonisation projects. It expanded SAF uptake from Los Angeles with an agreement to use more than 100 million liters over three years.

In April, Qantas announced a $15 million investment in ClimateTech Partners, an Australian venture capital fund supporting climate improvement projects. Domestically, Qantas partnered with Sydney Airport and corporate partners to complete Australia’s largest SAF importation.

The airline also reported improvements in its Voluntary Carbon Program, with 70% of offsets now nature-based and half linked to Australian projects.

Community Partnerships

Qantas entered new partnerships with Surf Life Saving Australia and the Australian Red Cross. The Red Cross program will fund training for 750 new volunteers, with more than 150 already trained. Qantas also provided $60 million in discounted fares to regional and remote communities and more than $2 million in grants to regional groups.

Financial Position and Outlook

Qantas ended FY25 with $12.2 billion in liquidity, including $2.2 billion in cash. Net debt stood at $5 billion, within the target range of $4.6 billion to $5.7 billion. Net capital expenditure totaled $3.9 billion as the fleet renewal program accelerated.

Looking ahead, Qantas expects strong travel demand into the first half of FY26. Domestic unit revenue is forecast to rise 3–5%, while international revenue is projected to increase 2–3%. Loyalty earnings are expected to grow 10–12%.

The Group said transformation efforts targeting $400 million in FY26 will offset rising costs from airport charges, wages, and government regulations. Fleet transition costs are forecast at $160 million.

Legal and Cybersecurity Matters

The airline confirmed it has finalized the legal case over its 2020 outsourcing of ground handling services. In December, Qantas settled with the union for $120 million in compensation, and earlier this month paid a court-ordered penalty. “Qantas has reiterated its apology to affected former employees for the impact that losing their jobs and the subsequent five-year legal process has had on them and their families,” the company said.

In June, Qantas also experienced a cyber incident affecting 5.7 million customers, exposing some personal data. The airline said it has strengthened protections and continues to provide support, including identity protection advice.

Closing Outlook

Hudson said the airline is optimistic as it accelerates domestic fleet renewal and advances Project Sunrise. “Looking ahead, there is a lot to be excited about,” she said.

The first Project Sunrise A350-1000ULR aircraft is scheduled for delivery in October 2026, with non-stop flights to London and New York planned for 2027.

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