Qantas Group Reported solid financial performance for the first half of FY2026

Qantas Group ended the half with $12.6 billion of liquidity, including $1.8 billion in cash, $1.2 billion in committed undrawn facilities and $9.6 billion in unencumbered fleet and other assets.

Liquidity:
$12.6 billion
- $1.8 billion in cash
- $1.2 billion in undrawn facilities
- $9.6 billion in unencumbered fleet & assets

Net Debt:
$5.6 billion (bottom of target range $5.6–$7.0 billion)

Capital Expenditure:
- $1.8 billion in 1H26 (fleet renewal acceleration)
- FY26 forecast: $4.1–$4.3 billion
- FY27 forecast: $5.1–$5.4 billion

Shareholder Returns
- Dividend: Fully franked interim base dividend of $300 million (19.8 cents/share)
- 20% increase vs. 1H25 and 2H25
- Payment date: 15 April 2026
- Buyback: On-market share buyback up to $150 million

Outlook & Key Assumptions
- Demand: Strong travel demand expected across portfolio
- Revenue Guidance:
- Domestic unit revenue: +3% YoY in 2H26
- International unit revenue: +1–3% YoY in 2H26
- Qantas Loyalty: Underlying EBIT growth of 10–12% in FY26

Cost & Transformation
- Fleet Transition Costs: ~$160 million in FY26 (A321XLR introduction)
- Same Job Same Pay: ~$95 million gross impact in FY26
- Restructuring Charges: ~$110 million in 2H26 (Jetstar Asia closure + restructuring)
- Fuel Costs: ~$2.5 billion in 2H26 (hedging + carbon costs, $35m transformation benefit)
- Depreciation/Amortisation: ~$2.25 billion in FY26
- Net Finance Costs: ~$300 million
- Transformation Target: ~$400 million in FY26 (offsetting CPI, 40% in 1H26, 60% in 2H26)

Strategic Commitment
- Net debt expected to remain at or below mid-range of target.
- Management reaffirmed margin targets for airline businesses and EBIT targets for Qantas Loyalty.

This paints a picture of Qantas balancing fleet renewal investment, shareholder returns, and transformation initiatives while maintaining strong liquidity and demand outlook.