By Digifin Pty Ltd · About this coverage
Key Points
- 1H27 fuel cost now expected to be approximately $3.75 billion
- Approximately 85% hedged for FY27, predominantly in Brent crude oil
- Group Domestic and Group International TRASK each expected to grow 8 to 10% in 1H27
- FY27 net capital expenditure expected at the lower end of the $4.3 billion to $4.6 billion range
- Qantas Loyalty on track for Underlying EBIT growth of 5 to 7% in FY27
About Qantas (ASX:QAN)
Qantas Airways Limited is an ASX-listed airline group headquartered in Sydney. It operates domestic and international passenger services under the Qantas and Jetstar brands, regional services through QantasLink and an air freight business. The group also runs Qantas Loyalty, a frequent flyer and points-earning program with retail, financial services and travel partners.
Qantas (ASX:QAN) issued a November market update to confirm that trading remains in line with the outlook given at its FY26 results despite elevated fuel prices, and to put its expected 1H27 fuel cost at approximately $3.75 billion.
Based on forward curves, the Group expects fuel prices to remain elevated through FY27. The fuel cost estimate assumes forecast consumption of approximately 16.2 million barrels and market jet fuel prices of approximately A$223 per barrel, excluding hedging. The Group is approximately 85 per cent hedged for FY27, predominantly in Brent crude oil. Group Domestic and Group International total unit revenue (TRASK) are each expected to grow by 8 to 10 per cent in 1H27, unchanged from the FY26 results guidance. FY27 net capital expenditure is now expected at the lower end of the previously guided range of $4.3 billion to $4.6 billion, and the company says Qantas Loyalty remains on track for Underlying EBIT growth of 5 to 7 per cent in FY27. Group Domestic capacity is down 3% in 1H27 and down 4% in 3Q27 on the prior corresponding period, while Group International capacity is up 2% and up 1%. The company describes international demand as strong, supported by customers redirecting travel away from the Middle East.
The release does not state the previous fuel cost estimate or give an earnings figure. Guidance on 2H27 TRASK will come with the 1H27 results in February 2027 and will reflect the cycling of prior fare and capacity actions.
Source: Qantas Airways Limited (ASX:QAN), 6 November 2026. Summary content supplied by Digifin Pty Ltd.
News summary only, not financial advice. It does not consider your objectives, financial situation or needs.