Qantas profits fall on Iran war fuel spike

Qantas reported a 13.8% drop in underlying pre-tax profit to about A$2.06 billion as jet-fuel costs surged amid the Middle East conflict, adding roughly A$420 million in costs and pressuring margins despite resilient travel demand. The airline also scrapped a planned A$150 million share buyback and declared a final dividend of 19.8 cents per share, while continuing a record fleet renewal, including new 787-9 deliveries and Project Sunrise’s A350-1000ULR, with non-stop Sydney–London slated for 2027. In a bid to optimise capital, Qantas confirmed it would retire its A380 fleet from 2028 and has begun talks with Airbus and Boeing to convert 20 options into firm orders for 2030. The company warned continued volatility in jet fuel prices and lifted full-year cost guidance, though it highlighted strength in premium demand and growth in its Jetstar unit. The group also indicated capacity and route expansion could support revenue growth despite cost headwinds.