Qantas Group Posts Strong FY25 Profit, Orders 20 More A321XLR

SYDNEY– Qantas Group (QF) has reported a strong financial result for FY25, underpinned by sustained travel demand, record passenger growth, and continued fleet renewal.

The airline confirmed an order for 20 additional Airbus A321XLR aircraft to support domestic and international expansion. At the same time, it highlighted progress on Project Sunrise, the long-haul program that will link Australia directly with London (LHR) and New York (JFK).

Photo: Qantas

Qantas Group FY25 Profit

Qantas Group delivered a robust profit performance in FY25, with both Qantas Airways (QF) and Jetstar (JQ) adding four million passengers compared to the previous year.

The dual brand strategy allowed the Group to capture demand across premium and budget segments, while Qantas Loyalty posted record growth in frequent flyer activity.

Jetstar recorded a standout year, carrying 16 million domestic passengers and increasing international traffic by 25 percent. The airline’s expanding Airbus A321LR and A320neo fleet, along with upcoming A321XLR deliveries, has boosted efficiency and opened new routes across Asia.

Qantas Domestic and QantasLink also benefited from new fleet additions, including A220s and A319s for the resources market in Western Australia (PER). The first A321XLR aircraft will enter Qantas’ domestic service in September 2025, making it the first airline in the Asia-Pacific to deploy the new type.

Group Domestic and Jetstar Performance

Group Domestic delivered $1.52 billion in underlying EBIT, a 12 percent increase year-on-year. Qantas unit revenue grew by 5 percent, supported by higher load factors, more business travel, and charter revenue growth.

QantasLink’s new A220s are expected to contribute up to $9 million in additional annual EBITDA per aircraft once the fleet reaches full scale.

Jetstar’s fleet renewal helped improve earnings by 55 percent. Around one in three of its customers flew for less than $100, reflecting the airline’s ability to maintain low fares despite cost pressures.

Following the closure of Jetstar Asia (3K), its A320 fleet is being redeployed to strengthen Jetstar operations in Australia (MEL), New Zealand (AKL), and QantasLink services.

Group International and Project Sunrise

International operations achieved a 20 percent EBIT increase to $903 million, with demand for premium cabins driving growth. Qantas International capacity expanded 6 percent, supported by the return of an additional Airbus A380 and strong yields across U.S. and European routes.

Project Sunrise moved a step closer, with Qantas’ first Airbus A350-1000ULR entering final assembly in Toulouse in late 2025. The first delivery is scheduled for October 2026, enabling direct ultra-long-haul flights from Sydney (SYD) and Melbourne (MEL) to London (LHR) and New York (JFK) by 2027.

Jetstar launched 11 new international routes during FY25, with particularly strong demand on services to Japan (NRT, KIX), Thailand (BKK), and South Korea (ICN). The carrier’s refurbished Boeing 787 fleet will re-enter service later this financial year.

Photo: Tobias Gudat

Qantas Orders 20 A321XLR

Qantas has placed an additional order for 20 Airbus A321XLR aircraft, introducing lie-flat Business seats on its narrowbody fleet for the first time.

The aircraft will strengthen Qantas’ largest-ever fleet renewal program, with 16 of the new A321XLRs fitted with upgraded cabins for long domestic routes such as Perth (PER)–Sydney (SYD) and select international services.

Fleet Expansion and New Capabilities

The 20 additional aircraft increase Qantas’ total A321XLR commitment to 48, with deliveries of the new configuration beginning in 2028.

Featuring a range of up to 8,700 kilometers—more than 3,000 kilometers beyond the Boeing 737s they will replace—the aircraft will open new nonstop links across Southeast Asia and the Pacific Islands.

Sixteen of the incoming A321XLRs will be configured with lie-flat Business seats, seatback entertainment screens, and Wi-Fi, enhancing the premium experience for longer routes.

This will allow Qantas to better serve corporate travelers on domestic transcontinental services while also creating new opportunities for international expansion, including potential routes such as Perth–India and Adelaide–Singapore.

Photo: Qantas

First A321XLR Flights Begin

Qantas will become the first Asia-Pacific airline to operate the A321XLR when the first two enter service in mid-September.

Initially deployed on Sydney (SYD)–Melbourne (MEL) and Sydney (SYD)–Perth (PER), the aircraft will gradually expand across other domestic and short-haul international routes. By the end of the financial year, seven A321XLRs are expected to be in service.

Jetstar (JQ) will also begin receiving A321XLRs from 2027, featuring a two-class international configuration.

CEO Perspective

Qantas Group CEO Vanessa Hudson described the investment as a major step in modernizing the airline’s operations and passenger offering.

“These additional A321XLRs will accelerate the retirement of our 737 fleet and open up new opportunities for domestic and international travel,” Hudson said. “The lie-flat Business seats, seatback screens, and fast, free Wi-Fi will provide a consistent premium experience for customers connecting from domestic to long-haul services.”

She added that the new fleet will support both customer satisfaction and workforce expansion, requiring more pilots, cabin crew, and engineers.

Overall Fleet Renewal

The Qantas Group currently has 214 firm aircraft orders, with 32 delivered as of June 30. This includes 17 new deliveries in FY25, 20 scheduled for FY26, and 29 for FY27. The breakdown includes 36 aircraft for Qantas, 10 for Jetstar, and three for Qantas Freight.

Separately, the first Airbus A350-1000ULR for Project Sunrise is due to enter final assembly in October, with deliveries beginning in 2026. These aircraft will enable nonstop flights such as Sydney–New York and Sydney–London.

The ongoing renewal is already improving fuel efficiency, reducing noise, and boosting customer satisfaction scores across the group’s network.

Photo: Qantas

Qantas Loyalty Growth

Qantas Loyalty delivered a 9 percent increase in EBIT to $556 million. Frequent flyer engagement reached record levels, with members booking more reward seats and redeeming more points compared to the previous year.

The introduction of Classic Plus on domestic flights expanded redemption opportunities, with more than one million seats booked under the program.

A growing list of retail partners, including David Jones and Woolworths Group, has reinforced the program’s value on the ground.

Customer Experience and Operations

Seventeen new aircraft joined the fleet during FY25, improving reliability and helping Qantas achieve its best on-time performance since 2019.

Qantas reported an 82 percent on-time departure rate in the second half of the year, while Jetstar improved to 76 percent.

The Group also upgraded lounges in Adelaide (ADL) and Broome (BME), while beginning major refurbishments in Sydney (SYD), Los Angeles (LAX), and Auckland (AKL).

International Wi-Fi connectivity expanded across Southeast Asia and trans-Tasman routes, and Jetstar introduced new in-app features and contactless onboard payments.

Sustainability and Community Investment

Qantas committed over $100 million of its $400 million Climate Fund to Sustainable Aviation Fuel (SAF) and decarbonisation projects.

The Group expanded SAF uptake from Los Angeles (LAX) with a three-year agreement covering 100 million litres, and worked with Sydney Airport (SYD) and corporate partners on Australia’s largest SAF import trial.

Community support included a new four-year partnership with Surf Life Saving Australia, a three-year partnership with the Australian Red Cross, and more than $60 million in regional flight discounts.

Photo: Qantas

Outlook for FY26

Qantas expects continued strong demand in FY26, with domestic unit revenue forecast to rise by 3–5 percent and international by 2–3 percent in the first half. Fleet renewal will accelerate with further A321XLR deliveries, while net debt is expected to remain within the target range.

Management highlighted ongoing cost challenges, including higher airport charges, wage pressures, and fleet transition expenses.

Despite these, Qantas remains confident in meeting its performance targets while rewarding shareholders with $400 million in dividends announced for FY25.

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