Qantas (ASX:QAN) Soars 9% on FY25 Results as Revenue Hits A$23.8 Billion

Investors Reward Qantas as Recovery Turns Into Renewed Momentum

Qantas (ASX:QAN) surged 9 percent today after unveiling its FY25 results, a remarkable turnaround for a company that was once on the brink during the depths of the pandemic. For long-term investors who held through the turbulence of 2020, the stock has now delivered close to 300 percent in returns, a testament to both resilience and recovery.

What stood out this year was a strong topline performance, with revenue climbing to A$23.8 billion from A$21.9 billion a year earlier, reflecting 9 percent growth. Passenger volumes rose nearly 8 percent as international travel continued its rebound, while the loyalty program expanded and further cemented itself as a reliable profit driver. Together, these tailwinds signaled not just recovery, but renewed momentum.

The bigger question for investors now is whether QAN can sustain this growth while managing rising costs and an ambitious fleet renewal. Understanding the balance between opportunity and risk is where the story gets most interesting.

QAN Delivers Margin Growth With A$1.6 Billion Profit Boost

For investors focused on stable growth, Qantas has delivered encouraging signs as topline revenue continues to translate into stronger bottom-line performance. Operating margins improved to 11.1 percent, up from 10.4 percent in the prior year, while net operating profit after tax (NOPAT) rose to A$1.6 billion, representing a 28 percent year-on-year increase.

The margin expansion was largely supported by a 6 percent reduction in fuel costs, as well as strong contributions from Jetstar and the Qantas Loyalty program.

These positives were partly offset by higher wage expenses, ongoing supply chain pressures, and one-off costs associated with fleet investments. Overall, the result highlights Qantas’s ability to capture efficiency gains while navigating a more complex cost environment.

Jetstar and Loyalty Shine as Qantas’s Fastest-Growing Divisions

• Within Qantas’s segment performance, Jetstar and the Loyalty program once again stood out as key growth drivers.
• Jetstar delivered revenue of A$5.7 billion, up 16 percent, while Qantas Loyalty grew 11 percent to A$2.9 billion.
• By comparison, Qantas Domestic rose 5 percent to A$7.6 billion and Qantas International and Freight increased 6 percent to A$9.2 billion

QAN Invests A$3.9 Billion in Fleet, Digital Upgrades, and Sustainability

The company also invested A$3.9 billion during FY25, primarily directed toward fleet renewal, with 29 new aircraft delivered over the year. Beyond its fleet, Qantas is allocating resources to digital initiatives, including a redesign of Qantas.com, the rollout of disruption management systems, and AI-driven tools.

Sustainability remains a priority, with continued spending on sustainable aviation fuel, waste reduction, and carbon reduction initiatives. The closure of Jetstar Asia is expected to free up approximately A$500 million in capital, allowing QAN to redirect funds toward higher-return markets.

Why Qantas Remains a Reliable Pick for Australian Portfolios

For many Australian investors, QAN has long been viewed as a core holding within local portfolios, offering exposure to a company deeply tied to the national economy. The airline has built a reputation for delivering relatively stable growth, and in recent years it has shown an ability to balance topline expansion with improved efficiency. 

For investors, this combination of revenue growth and profitability signals a company not only in recovery but also improving its long-term financial resilience, strengthening its position as a dependable component of an Australian equity portfolio.