Qantas Group and Jetstar Fuel Outstanding First Half with Explosive Travel Demand

In the first half of the financial year 2025, the Qantas Group's performance has largely aligned with its initial projections, demonstrating steady demand across both Qantas and Jetstar networks. Jetstar Domestic's revenue per unit has outpaced earlier expectations, propelled by a rise in travel demand. Meanwhile, Qantas Domestic is seeing year-on-year gains in passenger load factors and corporate travel demand.

Qantas Loyalty has maintained performance expectations, bolstered by the recent Classic Plus Flight Rewards launch. The loyalty program forecasts at least a 10% growth in underlying EBIT for FY25. However, adjustments in fair value from the launch are expected to result in slightly lower earnings for the first half, relative to last year.

The Group continues to face fuel price volatility, influenced by geopolitical factors that could affect costs if conditions change. At current levels, Qantas estimates its fuel expenditure for the first half of FY25 to be approximately $2.55 billion, which includes hedging and carbon costs. Consistent with its long-standing practices, the Group maintains robust hedging mechanisms, prepared to capitalize on any declines in jet fuel prices.