DorsaVi (ASX:DVL) Ultra Edge AI Could Unlock a Re-Rate Toward Our Base Valuation
DorsaVi (ASX:DVL) holds two IP acquisitions in ReRAM and neuromorphic AI. We value the stock…
- ASX: QAN
Qantas Airways Limited
Share Price and News
ASX BIG FOUR - LIVE SNAPSHOT
SELL
Whitehaven Coal
(ASX:WHC)
Paul Flynn
01/03/2026
$8.7m
BUY
Elixir Energy
(ASX:EXR)
Featured
SELL
Aspen Group
(ASX:APZ)
David Dixon
03/03/2026
$11.4m
BUY
Lovisa
(ASX:LOV)
Brett Blundy
04/03/2026
$6.8m
— Copmany Overview
Overview Of Qantas
Qantas Airways Limited (ASX: QAN), headquartered in Sydney, is Australia’s national airline and one of the largest in the Asia-Pacific region. The company operates both domestic and international flights, servicing 63 domestic and 35 international destinations across 23 countries. Qantas’ operations span passenger transport, freight services, and aircraft maintenance. Renowned for its commitment to safety and reliability, Qantas is consistently ranked among the world’s safest airlines. Its strong market presence and competitive edge have helped establish it as a key contributor to the Australian economy. The company operates through two main divisions – Qantas Domestic and Qantas International – with the domestic arm maintaining a leading market share. Additionally, Qantas’ subsidiary, Jetstar Airways, expands its reach in the budget travel segment, serving both domestic and international customers. By focusing on both premium services and low-cost travel, Qantas successfully caters to a wide market, positioning itself as a versatile and resilient airline.
Qantas' Company History
Qantas was founded in 1920 in Queensland and began by offering regional flights. It played a pivotal role in shaping Australian aviation as it expanded internationally in the mid-20th century, becoming the first airline to operate a commercial passenger service from Australia to London. Over the decades, Qantas has been a leader in aviation innovation, introducing various technological advancements to improve operational efficiency, customer experience, and safety. Privatisation began in the early 1990s and was completed in 1995. This transition gave Qantas the flexibility to expand, modernise its fleet, and invest in new technology. Since then, the airline has built a global network and strengthened its market leadership. Its successful long-haul operations and robust loyalty program have been instrumental in maintaining customer loyalty and reinforcing the brand. During the 2000s, Qantas shifted its focus to boosting profitability through cost-saving strategies and a refined business model to remain competitive in a globalised market. Between 2008 and 2023 it was led by Alan Joyce and his tenure saw the infamous 2011 lockout and the COVID-19 pandemic which both impacted the airline. While the airline survived and travel returned, Alan Joyce departed in September 2023 and was replaced by his long-term CFO Vanessa Hudson. In the last 2 and a half year, the airline has worked hard to balance rebuilding its reputation while boosting revenue sources. The company has had an emphasis on customer experience, reliability, and sustainability but has copped scruitany for its 2025 devalaution. Initiatives such as transitioning to fuel-efficient aircraft are planned to help reduce emissions and operating costs. Qantas has recommenced overhauling its domestic fleet and plans to welcome its first A350 by the end of 2026, to eventually fly non-stop from Australia’s East Coast to London and New York.
- Free Report
Get Our Full ASX Stock Analysis Report
Expert buy ranges, stop losses and detailed fundamentals for 200+ ASX stocks – free every week.
— Forward View
Future Outlook of Qantas (ASX: QAN)
Since Vanessa Hudson took the helm Qantas has been rebuilding its reputation but also progressing a fleet renewal and new initiatives to raise more money from its Frequent Flyer program and ancillary revenue (such as through Economy Plus). In its FY 2025 results, Qantas delivered revenue of approximately A$23.8 billion and a statutory profit after tax of about A$1.6 billion, representing strong performance as global travel demand rebounded and pricing power improved. The underlying profit before tax for the year was A$2.39 billion, the airline’s second‑strongest result on record, driven by robust domestic travel, strong international demand and significant contributions from its loyalty business and Jetstar division. Qantas also returned substantial capital to shareholders through dividends and share buybacks, demonstrating confidence in cash flow generation. Looking ahead, Qantas expects continued travel demand growth in FY 2026, but at a more moderate pace as markets normalise and capacity expands. Domestic unit revenue growth guidance for the first half of FY 2026 is around 3 per cent, while international unit revenue is expected to grow 2–3 per cent. The airline’s loyalty segment is also forecast to deliver double‑digit earnings growth, highlighting the value of Qantas’ diversified business model beyond passenger flying. Fleet renewal – including the introduction of new Airbus A321XLR and A220 aircraft for domestic and short-haul international routes; is expected to improve fuel efficiency and operating performance, although this also increases near‑term capital expenditure. The company’s net debt remains within its previously targeted range, supporting balance sheet flexibility. Macroeconomic factors such as fuel price volatility, labour costs and competition from other carriers remain key risks that could influence earnings outcomes. Nevertheless, analysts forecast continued earnings per share growth of around mid‑single digits to high‑single digits over the next few years, underpinned by stable travel demand and ongoing cost discipline.
— Our Assessment
Is Qantas (ASX: QAN) a Good Stock to Buy?
Evaluating whether Qantas is a good stock to buy in 2026 depends on investor objectives, risk tolerance and time horizon. At its current levels, Qantas trades on a relatively low P/E ratio of around 10x, which, given its recent profit recovery and long‑term cash flow potential, can appear attractively valued compared with broader market multiples. The airline’s strong FY25 performance – with underlying profits rebounding significantly and sizeable shareholder distributions – underscores both operational resilience and earnings power after years of pandemic disruption. For long‑term investors, Qantas offers exposure to secular trends in travel demand as both leisure and business travel recover toward pre‑pandemic norms. Its diversified revenue streams – encompassing premium travel, budget flying through Jetstar and the loyalty program – help buffer cyclical risk and reduce reliance on a single market segment. The airline’s ongoing fleet modernisation improves fuel efficiency, which can support margin improvement over time. However, risks remain. Fuel costs are a significant portion of operating expenses, and volatility in global energy prices can compress margins. Competition from carriers such as Virgin Australia may pressure yields, and macroeconomic headwinds – including slower consumer spending or recessionary pressures – could temper travel growth. Regulatory and operational challenges, including labour cost pressures, also warrant consideration. Given these dynamics, Qantas may be best viewed as a value‑oriented cyclical stock with moderate growth prospects rather than a high‑growth investment. Its strong balance sheet, attractive valuation and improving earnings trajectory make it a reasonable core position for investors with a medium‑ to long‑term horizon who are comfortable with airline industry cyclicality and operational risk. For those seeking defensive, stable growth stocks, Qantas may be less ideal, but for investors focused on a potential re‑rating and recovery play, the current valuation and earnings momentum support a constructive view, provided key risks are managed effectively.
— Our Stock Analysis
Related Articles
Celestica (NYSE:CLS) The AI Infrastructure Winner No One Wanted This Quarter
Celestica (NYSE:CLS) posted 53% revenue growth and a record 8% margin in Q1 2026, but…
The 50% CGT discount on shares: Here’s how it works, and if it is under threat
The 50% CGT discount on shares is one of the key mechanisms that helps investors…
Apple’s New Era: What the Tim Cook to John Ternus Transition Means for the World’s Most...
Apple (NASDAQ: AAPL) has confirmed that Tim Cook will step down as chief executive officer…
How To Read a Balance Sheet As An Investor: The 7 Questions Prudent Investors Need to Ask!
Knowing how to read a balance sheet is a key skill investors need to know,…
Adisyn (ASX:AI1) Graphene Breakthrough, What Investors Need To Know
Adisyn may have a fix for the Chip Industry's Wiring Problem
Think about the wiring…
— Faq
Frequently Asked Questions
What is the current performance of Qantas Airways?
Qantas has shown strong financial recovery since the pandemic, benefiting from increased demand for domestic and international travel. Its operational efficiency and premium services support ongoing performance.
What are the risks of investing in Qantas Airways?
Key risks include fuel price volatility, growing competition from low-cost carriers and international airlines, and potential regulatory changes. However, Qantas has proven its ability to navigate these challenges.
Is Qantas Airways a good investment in the long term?
Yes. Qantas’ strong brand, diversified operations, and investment in sustainability position it well for long-term growth. Its financial recovery post-pandemic further supports its appeal to long-term investors.
What factors should investors consider before buying Qantas stock?
Investors should evaluate global travel trends, competition levels, regulatory changes, fuel prices, and Qantas’ focus on customer experience and emissions reduction. Monitoring how the airline performs during economic uncertainty is also essential.
What is the outlook for Qantas Airways in the next 5 years?
The outlook is positive, driven by growing international travel demand, premium service expansion, and strategic fleet upgrades. Sustainability initiatives are also expected to enhance long-term performance.
Stay Sharp on the ASX
Weekly research. Independent analysis. No noise.
Free forever · Unsubscribe anytime
