Qantas profit falls 19.7% as fuel costs rise

Qantas said annual net profit fell 19.7% to Aus$1.29 billion ($930 million) in the financial year to June 30 as fuel costs rose 14.4%.

The Australian airline forecast jet fuel prices would remain elevated from July to December and said it would use measures including hedging against crude oil price changes. Revenue rose 7.1% to Aus$25.5 billion.

Qantas said travel demand remained resilient and should support revenue in the months ahead, even as business and consumer confidence weakened near the end of the financial year.

Qantas Group chief executive Vanessa Hudson said conflict and economic headwinds created uncertainty and led some large corporate and government customers to manage costs more tightly, reducing travel demand. She said the airline adjusted fares and capacity and redeployed aircraft to give customers more options to fly to Europe.

Hudson said Qantas added 17 new aircraft during the financial year and expected up to 31 more in the year ahead. She said the investment would allow the airline to start retiring its A380 fleet from 2028.