Financial Performance:
Underlying PBT reached $1.46 billion (up 5% YoY), with EPS of $0.68 (up 7%). Operating cash flow was strong at $1.8 billion. The Board approved an interim shareholder distribution of up to $450 million, including a fully franked base dividend of $300 million (up $50 million) and an on-market buyback of up to $150 million. Net debt ended at $5.6 billion (bottom of FY26 target range). Group capacity grew 4% with RASK up 3%.

Fleet Renewal Impact:
The company invested $1.8 billion in fleet and projects, adding 18 aircraft (9 new). Jetstar’s A321LR fleet at scale delivered stellar results—60% of Jetstar’s earnings uplift came from new aircraft through improved fuel efficiency, reduced maintenance, enhanced utilization, and ability to launch new short-haul international routes while redeploying 787s to higher-demand Japan/Korea markets. This provides confidence as Qantas fleet renewal reaches scale.

Segment Performance:

Group Domestic: EBIT over $1 billion (up 14%), 18% margin. Jetstar Domestic delivered outstanding results with earnings up 38% and 22% EBIT margin. Strong demand across business purpose (particularly SME and resources) and premium leisure travel.

Group International: Underlying EBIT impacted by 6% due to cost escalations (higher engineering, operational wages, new aircraft training). Jetstar International earnings up 9% with 14% operating margin. Qantas International saw strong premium cabin demand on long-haul routes. Final A380 returned to service. The company is redeploying 3 A380s from North America to Singapore and adjusting capacity due to suppressed ex-Australia leisure demand, though ex-US demand remains strong.

Loyalty: EBIT $286 million (up 12%). Frequent Flyer membership now exceeds 18 million. Announced most significant status changes in program history: members can roll over unused status credits and earn status credits through everyday ground spending.

Project Sunrise Update:
Management remains highly confident based on Perth-London and Auckland-JFK performance data. Premium yield uplift on Perth-London now at 22% (vs. 19% originally modeled). First 4 aircraft arriving in FY27. Expected incremental $400 million EBIT contribution. Aircraft viewed as “no-regret purchase” suitable for redeployment if needed, though demand outlook is strong.

Operational Improvements:
Qantas NPS up 5 points, Jetstar up 4 points. Qantas achieved 70% on-time performance (highest among major domestic airlines), Jetstar improved to 71%. Frontline workforce increased 4%. Opening Jetstar Perth cabin crew base (90 new roles) and reestablishing Qantas Singapore crew base (up to 650 by year 5) to support network growth and reduce costs.

FY26 Outlook:
Group RASK expected to increase ~3% in H2. Domestic RASK up ~3%, International RASK up 1-3%. Same Job Same Pay full-year impact now $95 million (up $15 million). EIS costs to increase $20 million vs. H2 FY25. Loyalty EBIT growth expected 10-12% for full year. CapEx guidance: FY26 $4.1-4.3 billion; FY27 $5.1-5.4 billion reflecting fleet acceleration. Earnings seasonality returning to normal 60-40 split.