Qantas FY25 results

[moa999]

Docs hitting the ASX today.

Headline underlying profit up on FY24, down on FY23

 

[Brettmcg]

Qantas places order for 20 additional A321XLR aircraft; 16 with lie-flat Business seats

 

[moa999]

Commentary on fleet. My bolding. --

The Group’s fleet renewal program continued with the delivery of the first A321XLR, seven new A321LRs, four new A320neos and five new A220-300s. In addition, the Group took delivery of five mid-life A319-100s, seven mid-life Q400s and four E190s through wet lease arrangements with Alliance Airlines. With 20 A321LRs now in the fleet, Jetstar is seeing significant incremental fuel and scale efficiencies, reduced emissions per ASK compared to its A320-200s and improved customer and employee sentiment from this new technology.

Alongside investment in new fleet, the Group continues to enhance the customer experience on the ground and in the air. This includes investment in lounges, redesigned food and beverage offerings on Qantas, bolstered disruption management capabilities, and improved baggage solutions, including enhanced tracking. Significant investments are also being made in cabin enhancement programs across Qantas’ 737-800 and A330 fleets and Jetstar’s 787-8 aircraft. This includes features like new seating, Wi-Fi connectivity, larger overhead bins and updated inflight entertainment screens. With the first A321XLR delivered for the Group, additional fleet orders for 20 Qantas A321XLR aircraft were confirmed, including 16 aircraft with lieflat Business seating.

 

[moa999]

Auckland lounge to re-open Feb 2026
Also LAX Business to be refreshed

Cabin refresh on 330s and Jetstar 787s pushed back a few months. (First aircraft to return from Feb 2026 and April 2026 respectively)

Broader Asian Wifi from Dec 2025 (presumably on 330s).


Jetstar 321XLR from 2027 to be two-class.


Sunrise A350s to commence 4Q FY27 (so Apr-June 2027) once QF has three aircraft.
(Would enable daily SYD-LHR)


Aircraft deliveries over next two years mostly unchanged.
No specific comments on 737 retirements.

Also confirms that 4 ex-SQ 737s will join fleet in FY26.

 

[levelnine]

Qantas Loyalty's net operating margin has reduced for the 5th straight year in a row.

Growth in points bookings is down compared to last financial year.

Growth in points earned is down compared to last financial year.

Growth in member numbers is down compared to last financial year.

Growth in active members is down compared to last financial year.

Growth in new QBR members is down compared to last financial year.

Qantas' share of the credit card market has stagnated (was growing last year).

It's always funny when Qantas Loyalty (and its boosters) talk about the 'loyalty flywheel' even though growth is deaccelerating by every single metric.

 

[moa999]

On 321XLR:
Qantas’ first two A321XLRs are expected to enter service on its domestic network in mid-September, making it the first airline in the Asia Pacific to operate the new aircraft type.

Strong forecast capacity growth driven by new deliveries. I assume JQ is down with the 787 refurb.

 

[justinbrett]

This is great news about A321 lie flat seats. I'm hoping they will also be used for trans-con?

 

[gtrod]

This is great news about A321 lie flat seats. I'm hoping they will also be used for trans-con?

Qantas Group CEO Vanessa Hudson says the lie-flat seats will be “well suited for longer domestic sectors like Sydney and Melbourne to Perth, and creating new possibilities for our international network on routes like Perth to India or Adelaide to Singapore.”

“They’ll also provide a more consistent premium experience for customers flying domestically and connecting onto our long-haul international network, like Brisbane- Perth-London.”

Seems they are well aware that recliners aren't going to cut it when connecting with long-haul.

 

[jase05]

How’s that HBA lounge demolition looking

Good to see narrowbody lie flat J product even though it won’t be on routes that I fly often

 

[moa999]

And summarising the day, the market liked the results with QAN up 9% for the day.

 

[elanshin]

Qantas Loyalty's net operating margin has reduced for the 5th straight year in a row.

Growth in points bookings is down compared to last financial year.

Growth in points earned is down compared to last financial year.

Growth in member numbers is down compared to last financial year.

Growth in active members is down compared to last financial year.

Growth in new QBR members is down compared to last financial year.

Qantas' share of the credit card market has stagnated (was growing last year).

It's always funny when Qantas Loyalty (and its boosters) talk about the 'loyalty flywheel' even though growth is deaccelerating by every single metric.

Although to some degree its the Netflix effect. At some point you have saturated the market and can't grow anymore. There's only so many people in Australia.

It needs other ways to keep growth or profitability.

 

[Melburnian1]

In FY 25, there was 10 per cent growth in points earned but only eight per cent growth in points redeemed.

This is an example as to why it's harder and harder to find redemptions in some FF schemes.

 

[levelnine]

Although to some degree its the Netflix effect. At some point you have saturated the market and can't grow anymore. There's only so many people in Australia.

It needs other ways to keep growth or profitability.

Yes and no. Its TAM is, in fact, far larger than Australia — people from all around the world can sign up to QFF.

It taps into the world's biggest pool of points (the US) when growths slows. Eg it ran multiple transfer bonuses from US Amex MR coming out of COVID-19. It recently ran one from Capital One, which is an indication it thinks points growth is slowing in Australia.

The problem is that many other foreign airlines have the same idea — Air Canada, Air France/KLM, BA, Qatar, Avianca, etc all aggressively market to Americans. And these programs are generally superior to Qantas. There are some limited exceptions. Qantas is popular with Americans trying to book Emirates J/F and El Al.

 

[SYD]

There are some limited exceptions. Qantas is popular with Americans trying to book Emirates J/F and El Al.

How’s that going for them at the moment?

TBH, I don’t mind a downturn in earners and churners - more options for us to use points.

 

[levelnine]

How’s that going for them at the moment?

TBH, I don’t mind a downturn in earners and churners - more options for us to use points.

Long term, what Qantas Loyalty will likely do is sell out Australians and shift its growth focus to the US.

It's what most European carriers have done following the imposition of interchange caps and the decline of the domestic points market.

 

[justinbrett]

How’s that going for them at the moment?

TBH, I don’t mind a downturn in earners and churners - more options for us to use points.

It's not a downturn. A reduction of growth does not equal a decline - it's still growing in all the key metrics.

In contrast, I heard a boffin on the news today talking about supermarkets, that Coles and Woolworths have achieved full market saturation, and the only growth is stealing market share from each other. So Coles is growing but Woolworths is declining.

Does the airline exist to support the loyalty program or does the loyalty program exist to support the airline? I'd be happy if QFF was restricted to Aus/NZ residents and stopped growing, and focused on having a sustainable level of points liability and redemptions. I don't really see the point of QF loyalty growing for the sake of growth - QF has other ways to make money.

 

[moa999]

and shift its growth focus to the US.

Just can't see that being successful.. Aus is a lot further from the US than Europe (particular for East Coast)..

Airline loyalty works because its a relatively expensive thing but still achievable, but still needs a connection to the customer. I just can't see that working for an Aus based airline.

Heck Qantas has struggled even in NZ and Singapore.

 

[arrow]

View attachment 466204

Does anyone know what the enhancement of the First dining, service and experience relates to in the Forward Focus section?

 

[justinbrett]

Does anyone know what the enhancement of the First dining, service and experience relates to in the Forward Focus section?

I think what it says on the tin.

They've had recent improvements by restoring a dedicated coughtail menu (regardless of meal times) and restored full strength coughtails like martinis and the beloved Espresso Martini.

For service LAX could definitely use some improvement.

edit- I read First Class lounge, but this seems to be talking about inflight.

 

[logicallysynced]

Does anyone know what the enhancement of the First dining, service and experience relates to in the Forward Focus section?

I heard a few weeks back QF did a short trial offering dine on demand with a new menu in F on QF11. Potentially testing the waters as one of these enhancements?