Qantas Profit Drops 13.8 Percent Amid Surging Fuel Costs

Qantas reported a 13.8 percent decline in underlying pre-tax profit for the year ended June 2026, with earnings falling to $2.06 billion from $2.39 billion the previous year. The airline attributed the slump to a fuel bill increase of over $600 million, which was driven by the conflict between the United States, Israel, and Iran.

CEO Vanessa Hudson stated that economic headwinds and the conflict reduced business and consumer confidence during the final four months of the year. This uncertainty led corporate and government clients to cut travel budgets. To mitigate the $610 million fuel cost surge, the airline adjusted fares, modified capacity, and redeployed aircraft to European routes, which limited the net impact on earnings to $420 million.

Beyond fuel costs, Qantas and Virgin Australia have both reduced domestic routes. This shift follows a slowdown in demand caused by rising living costs for consumers.