Sydney, February 26, 2026, 17:53 AEDT — After-hours
- Qantas shares closed down 9.2% at A$9.67 after swinging between A$11.09 and A$9.58
- Airline posted A$1.46 billion first-half underlying profit before tax and flagged an interim dividend plus a buyback
- Investors are watching whether demand on Australia-U.S. routes steadies in the June half
Qantas Airways Ltd (ASX:QAN) shares closed down 9.2% at A$9.67 on Thursday, after the airline’s first-half results exposed a soft patch in its international business despite a rise in profit. The stock traded in a wide A$9.58 to A$11.09 range. (Investing)
The move matters because the market is leaning hard on one question: is the weakness on long-haul routes a blip, or the start of something messier for pricing and costs into the June half.
Qantas is a bellwether for Australian travel demand and discretionary spending, and investors have been quick to punish airlines when international margins wobble, even in a strong domestic cycle.
Qantas reported an underlying profit before tax of A$1.46 billion for the six months ended Dec. 31, up 5%, while statutory profit after tax was A$925 million, flat. It also announced interim FY26 shareholder distributions of up to A$450 million, including a fully franked interim dividend of 19.8 Australian cents a share and an on-market buyback of up to A$150 million, the company said. (Qantas)
The problem for the stock was overseas. Qantas’ domestic division lifted underlying EBIT — earnings before interest and tax, a common operating profit yardstick — by 14%, but international underlying EBIT fell 6% as costs rose and economy-class demand to the United States softened; the shares were down as much as 10% at one point. The carrier said it expects second-half domestic unit revenue — revenue earned per seat flown — to rise about 3%, and international unit revenue to increase about 1% to 3%, while it shifts some capacity from U.S. routes to destinations such as Singapore. (Reuters)
Chief executive Vanessa Hudson told analysts the dip in demand on U.S. routes looked “short-term” and pointed to the Australian dollar’s rebound above 70 U.S. cents as a potential tailwind for bookings later in the financial year. (Reuters)
That currency angle has popped up across the Tasman too. Qantas and Air New Zealand have both framed trans-Pacific softness as a price issue for travellers rather than a collapse in appetite for the route.
Qantas is also spending more to refresh the fleet. It has been taking delivery of new aircraft and training crews, which adds near-term costs even as newer planes tend to cut fuel burn and maintenance over time.
Still, the sell-off shows investors are not giving much credit for the headline profit or the payout plan tonight. If cost inflation sticks — wages, training and other operating costs — or if U.S. demand fails to recover, the second half could look less clean than the company’s guidance implies.
The next tests are close. Traders will watch for follow-through in the stock at Friday’s open and for any fresh signals on long-haul bookings and capacity moves in coming weeks, alongside details on buyback timing.
For shareholders, the calendar is set: Qantas’ record date for the interim dividend is March 11, with payment due April 15, according to the company’s financial calendar. (Qantas)
