Qantas Sees 20% Profit Plunge Amid Rising Fuel Costs Due to Middle East Conflict
Australia’s flagship carrier, Qantas Airways, has announced a significant drop in its annual earnings. The ongoing US-Iran conflict in the Middle East has led to skyrocketing jet fuel costs, heavily impacting the airline’s bottom line. The full-year results, released on Thursday, August 27, 2026, revealed a net profit of $1.3 billion for the 2025–26 financial year. This figure represents a sharp 19.8% decrease compared to the previous year.
The underlying pre-tax profit also experienced a decline, falling 13.8% to $2.1 billion. Despite this, total revenue saw growth, increasing 7.1% to reach $25.5 billion. Qantas attributed the significant $420 million financial impact on its results to the Middle East conflict. The war led to increased fuel costs and necessitated aircraft reroutings through Asian airport hubs, which squeezed margins. The second half of the year saw jet fuel refining margins surge dramatically, pushing the airline’s fuel bill well above forecasts.
Despite these challenges, CEO Vanessa Hudson maintained an optimistic outlook. She described the result as “strong” considering the external pressures and highlighted that “Qantas continued to see growth at the premium end of the market.” The airline managed to carry nearly 56,000 passengers during the year, a figure that aligns with 2024–25 levels. Looking forward, Qantas is gearing up for a new chapter. The airline is set to take delivery of a next-generation aircraft in April 2027, with plans for Sydney-to-London non-stop flights to commence in October 2027.
Source: The New Daily – Qantas’ profit dips as it counts cost from Iran war