Qantas shares initially rose on Thursday, after the group posted an underlying pre-tax profit of $1.5 billion for the six months to December, slightly ahead of expectations and up about five per cent from the same time in 2024.
But they quickly reversed that 4.1 per cent gain as investors delved more deeply into the figures, with Qantas shares ending the day down 9.2 per cent to $9.67.
EToro market analyst Josh Gilbert said the result was mixed, with some of the underlying figures coming in below expectations.
"Qantas has wound back planned domestic capacity growth after softer-than-expected corporate demand, which is worth watching closely because corporate travel has historically been higher-margin and a reliable barometer of broader economic confidence," Mr Gilbert said.
"On the international side, demand for economy services from Australia to the US has weakened, even as inbound US to Australia travel has grown, and it's hard to ignore the role that a softer Australian dollar and evolving US economic conditions are playing in that shift."
Qantas chief executive Vanessa Hudson said it was a strong result that demonstrated the airline's investments in new airplanes was paying off.
Qantas and Jetstar took delivery of nine new aircraft in the half, with a fourth long-range, narrow-body Airbus A321XLR delivered for flights between Brisbane and Manila.
Ms Hudson said another 30 new aircraft would arrive in the next 30 months, including the Airbus A350s that will be used on Qantas "Project Sunrise" non-stop flights to New York and London from mid-2027.
"In my three decades at Qantas, I can't remember a level of new aircraft deliveries in such a short period of time," she told reporters.
Jetstar is further along with its fleet-renewal program and Ms Hudson said 60 per cent of its $53 million increase in earnings growth was driven by its next-generation aircraft.
The budget carrier has 22 A321LRs and five A320neos, which it used to open four international routes in the half, including to the Indonesian city of Denpasar.
The aircraft delivered better fuel efficiency, lower maintenance costs and greater flexibility, Ms Hudson said.
"This is critical for Jetstar, because it continues to enable us to provide our customers with low fares," she said.
Ms Hudson warned aircraft charges and government fees had grown at double the rate of inflation over the past 12 months, although she added Qantas was offsetting those costs when possible for customers.
The group's flow of money will add to an increased interim dividend for shareholders totalling $300 million or 19.8 cents a share - a 20 per cent increase.
It will also spend up to $150 million buying back shares.
RBC Capital Markets analyst Owen Birrell also called it a mixed result with the airline's overall profit just above expectations and earnings from international operations missing predictions.
Ms Hudson said demand for economy flights to the US had been softer than expected, although she attributed that to a weaker Aussie dollar rather than problems with tight border controls.
Inbound demand from the US to Australia was still strong, she said.
Qantas is redeploying one of its A380s from flights to Los Angeles and will use it for flights to Singapore, where demand has been stronger. Â
The airline announced it would launch the first direct flight between Sydney and Las Vegas, a seasonal flight that will run from December 29 until March 12, 2027.
Qantas also unveiled changes to its frequent flyer program, giving members the ability to roll over unused status credits and earn them through everyday spending for the first time.
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