Qantas unveils bumper $1.46bn profit as Australian travellers shrug off cost-of-living pressures

The Guardian World

by Jonathan Barrett Business editor

February 25, 2026

AI-Generated Deep Dive Summary

Qantas reported an impressive $1.46 billion half-year underlying profit, reflecting resilience despite ongoing cost-of-living pressures in Australia. The airline attributed its strong financial performance to several factors, including improved fuel efficiency, robust customer demand, and strategic expansion of routes and flight frequencies to key destinations such as Japan, Bali, and New Zealand. These moves have bolstered Qantas’s ability to cater to both domestic and international travelers, contributing to a 5% year-over-year increase in profits. One major driver of Qantas’s success has been the introduction of more fuel-efficient aircraft, which have reduced operational costs and enhanced profitability. Additionally, the airline’s focus on expanding routes to high-demand locations like Japan, Bali, and New Zealand has attracted more travelers, particularly those seeking leisure and business opportunities. Increased flight frequencies on these routes have further accommodated growing customer demand, ensuring Qantas maintains a competitive edge in the aviation market. The strong performance also highlights the resilience of the Australian travel industry despite economic challenges. Travelers appear to be prioritizing experiences and convenience over cost-of-living concerns, driving demand for flights both domestically and internationally. This trend underscores the adaptability of airlines like Qantas, which have effectively balanced operational efficiency with customer-centric strategies to achieve record-breaking profits. Qantas’s success is not only a positive sign for the airline industry but also reflects broader economic trends in Australia and beyond. The ability of businesses to innovate and adapt to changing market conditions demonstrates resilience in the face of global economic uncertainties. As Qantas continues to expand its network and improve operational efficiency, it sets a benchmark for other airlines aiming to thrive in a competitive landscape. Overall, Qantas’s $1.46 billion profit underscores the importance of strategic planning and customer focus in navigating challenging economic environments. The airline’s ability to capitalize on emerging markets and optimize its operations positions it as a leader in the aviation sector, offering valuable insights for both industry stakeholders and travelers alike.

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Originally published on The Guardian World on 2/25/2026