If there’s one thing Australians love, it’s a national airline that can fly straight and true through headwinds, turbulence, and the odd political squall. Qantas has done just that in FY25, banking a strong set of results, rewarding staff and shareholders, and announcing a shopping spree for 20 shiny new Airbus A321XLR aircraft — 16 of which will sport lie-flat Business seats. That kind of detail makes road warriors grin and frequent flyers nod approvingly into their airport lounge flat whites.
This is a tale of revival, resilience, and red roo renaissance. The Qantas Group, under the watch of Chief Executive Vanessa Hudson, has not only lifted its financials but also restored something less tangible — confidence. In Hudson’s own words:
“For everyone across the Qantas Group, this year has been all about delivery. 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.”
A year of flying higher
Let’s begin with the headline numbers. Qantas and Jetstar carried four million more customers than the previous year. The Loyalty arm clocked a 9 percent EBIT rise as frequent flyers cashed in and earned points at record levels. Dividends returned with a flourish: $800 million for shareholders, including a special dividend to keep them sweet.
The Group Domestic division notched $1.52 billion in EBIT, a 12 per cent lift, while Qantas International surged ahead with $903 million, buoyed by premium cabin demand and extra A380 capacity. Jetstar also had a banner year, carrying 16 million domestic passengers and boosting its EBIT by a jaw-dropping 55 percent.
In a country where the cost-of-living conversation dominates nightly news bulletins, Jetstar’s appeal was underlined by Hudson herself:
“In a high cost of living environment, Jetstar continued to provide value for customers, with around one in three travelling for under $100.”
That’s a statistic guaranteed to warm the hearts of budget-conscious families planning their school-holiday escapes.
Fleet renewal: the XLR factor
Aviation, like fashion, thrives on the new season’s arrivals. For Qantas, that means 20 more A321XLRs. These long-range narrowbodies are the airline equivalent of a Swiss Army knife: lean, efficient, and versatile enough to cover domestic and regional international routes with aplomb.
The kicker? Sixteen will be fitted with lie-flat Business seats, a rarity on single-aisle aircraft. That makes Qantas the first in Asia Pacific to operate the type, with the first entering domestic service this September. Expect corporate travellers to cheer and rival carriers to frown.
QantasLink’s renewal story features the new Airbus A220s, replacing the stalwart Boeing 717s. Once the fleet scales up, each A220 is projected to deliver up to $9 million more EBITDA annually. The retirement of the Q200 and Q300 turboprops marks the end of an era, but the message is clear: modern, efficient aircraft are now non-negotiable.
Jetstar’s turbocharged performance
If Qantas is the Group’s crown, Jetstar is the sparkling jewel. The budget carrier launched 11 new international routes in FY25, enjoyed booming demand into Japan, Thailand and South Korea, and saw international traffic climb by 25 percent.
The low-cost airline’s refreshed Dreamliners will be rolling out by year’s end, while Jetstar’s A321XLRS will follow in 2027. Fitted with two-class cabins, they will broaden Jetstar’s mid-haul international offering.
The dividend returns
For long-suffering shareholders, the return of dividends is a tonic. After years of turbulence and pandemic pain, the board declared a final dividend of $250 million, plus a special dividend of $150 million. Add the interim dividend of $400 million, and the full-year payout reaches $800 million. Fully franked, of course — because if you’re going to do it, you may as well do it properly.
Hudson framed it as part of a broader story of balance: investing in new aircraft and customer initiatives while rewarding staff and investors. And on that note…
Staff shares and saying thank you
Qantas has often been criticised for its industrial relations history. FY25 marked a genuine olive branch: a $1,000 “thank you” payment made last December to 25,000 non-executive staff, and now a new annual employee share plan of $1,000 worth of Qantas shares, dependent on financial performance.
Hudson was quick to give credit:
“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.”
It’s hard to argue with that. After all, no amount of Airbus deliveries or clever hedging strategies can mask the reality that cabin crew, ground staff, engineers, and pilots keep the show on the road.
Loyalty pays in points and profits.
Frequent flyer programs are the goose that lays golden eggs for airlines, and Qantas Loyalty is no exception. FY25, it raked in $556 million EBIT, a 9 percent jump.
Members booked a record number of Flight Reward Seats, aided by the launch of Classic Plus, which added over a million new seats. One in three were snapped up for peak holiday periods, proving Australians know how to game the points system when it matters most.
Retail partners grew on the ground: David Jones joined, while Woolworths renewed its contract until 2030. Add in booming TripADeal bookings, and you have a loyalty division that looks less like a perk and more like a standalone powerhouse.
Sustainability and Project Sunrise
No Qantas results would be complete without a nod to Project Sunrise, an ambitious quest to link Sydney directly to London and New York. The first A350-1000ULR is on its assembly line in Toulouse and is due for delivery in October 2026. Non-stop flights from Australia’s east coast to Europe and America are targeted for early 2027. If that doesn’t make aviation geeks salivate, nothing will.
Sustainability is also edging from aspiration to action. Qantas has committed $100 million to SAF and decarbonisation projects, signed a deal to source 100 million litres of SAF from Los Angeles, and orchestrated Australia’s largest-ever SAF import trial with Sydney Airport. Add partnerships with Surf Life Saving Australia and the Red Cross, and the airline is working hard to polish its community credentials.
Operations: punctuality makes a comeback
Punctuality is the ultimate airline KPI. After years of being lampooned as “often late”, Qantas clawed back respect with its best on-time performance since 2019. In the second half of FY25, 82 percent of Qantas flights departed on time, while Jetstar improved to 76 percent, with its cancellation rate the lowest in seven years.
Qantas even picked up the Skytrax Best Airline in Australia/Pacific award. For a carrier once bruised by headlines, this was vindication.
Not without headwinds
It wasn’t all champagne and confetti. Costs continue to climb: airport and government charges, engineering, wages, and Same Job, Same Pay legislation all bit into margins. A cyber incident compromised the personal data of 5.7 million customers, forcing remedial spending and denting goodwill. The legacy of outsourcing ground handling during the pandemic led to a $120 million settlement with unions, plus a Federal Court penalty.
Hudson’s message here was refreshingly frank: yes, performance is strong, but transformation is not optional.
Freight, finance and the future
Qantas Freight delivered a 7 percent revenue uplift while gearing up for its new Western Sydney Airport hub in 2026. Liquidity stood at a robust $12.2 billion, with net debt at $5.0 billion comfortably within the target range.
The Group has forecast strong travel demand into FY26, with domestic revenue tipping to rise by up to 6 per cent and international by around 4 per cent. Transformation initiatives worth $400 million are already scoped to offset inflationary costs.
Final approach
Qantas FY25 is a story of restoration. Passengers are returning, profits are flowing, planes are arriving, dividends are back, and even the staff are smiling (or at least smiling more often). The scars of recent years haven’t vanished, but they’re fading.
Vanessa Hudson summed it up best:
“Looking ahead, there is a lot to be excited about.”
Indeed. Project Sunrise looms on the horizon, SAF is gaining traction, and the Group has shown it can handle turbulence and tailwinds. For Australia’s flying kangaroo, FY25 wasn’t just a good year; it was a year that set the course for an ambitious new chapter.
By Susan Ng
