Qantas Shares Rise 4% as Strong Earnings and Premium Travel Demand Boost Outlook

Shares of Qantas Airways rose 4% on Thursday after the airline reported full-year earnings and introduced new business-class suites as demand for premium international travel continued to strengthen.

Qantas said international travel demand remained robust across both its mainline operations and low-cost subsidiary Jetstar. Capacity and unit revenue increased across both businesses, although rising fuel costs weighed on international earnings.

Premium travel was a key growth driver. International premium cabin revenue increased 15% in fiscal 2026, growing at twice the rate of economy revenue. The trend reflects continued strength in higher-value travel demand, an increasingly important revenue source for global airlines.

Alongside its earnings announcement, Qantas unveiled new business-class seats for its Airbus A321XLR fleet. The new suites will include lie-flat beds and privacy doors, with the first of 16 aircraft equipped with the product expected to arrive in 2028. The airline also introduced updated business-class seats for its new Boeing 787-9 Dreamliners.

For the full year ended June 30, Qantas reported underlying profit before tax of A$2.06 billion, or about $1.48 billion. The result came in around 3% above Visible Alpha consensus estimates, according to Citi.

Looking ahead, Qantas expects both domestic and international unit revenue to rise between 8% and 10% in the first half of fiscal 2027. However, fuel costs are also expected to increase, creating a potential offset to revenue growth.

Citi maintained its “buy” rating on Qantas following the results, highlighting Jetstar and the airline’s loyalty business, Qantas Loyalty, as standout performers.

The latest results suggest Qantas is benefiting from a favorable mix of resilient travel demand, stronger premium cabin spending and solid performance from its diversified businesses. At the same time, the airline’s investment in upgraded business-class products signals a longer-term effort to capture more high-margin premium traffic, even as higher fuel costs remain an important risk to profitability.