Qantas Shares Soar as Airline Reports $1.6 Billion Profit
Hey everyone, let’s talk about the big news in the markets today—Qantas is absolutely flying high, and I mean that both literally and figuratively. Earlier this week, Qantas shares surged to their highest levels ever, hitting around $12.60 per share. That’s a more than 12% jump in just one day, and over the past five years, the stock has more than tripled in value. This impressive performance comes despite the airline’s rocky history during the pandemic and some ongoing legal battles.
So, what’s behind this surge? Well, Qantas just announced a $1.6 billion net profit for the year, which blew past analysts’ expectations. It’s a remarkable turnaround for a company that was once close to collapse during COVID-19 and was rescued with $2.7 billion in government support, mainly from JobKeeper subsidies. Interestingly, Qantas is now back to paying corporate tax after years of minimal contributions, with around $657 million reported for 2024-25. That’s a huge jump from the $24 million paid in the previous year.
Of course, the airline hasn’t been without controversy. Last week, it was ordered to pay a record $90 million fine for illegally outsourcing ground handling jobs during the pandemic. This was part of a broader legal case that also involved a $100 million penalty related to so-called “ghost flights.” Qantas’ CEO Vanessa Hudson has publicly apologized to the affected employees and emphasized that the company is changing for the better. The airline has implemented all 32 recommendations from an independent governance review, and the board and executive team have been refreshed to prevent similar issues in the future.
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Despite these scandals, the Australian aviation market remains largely dominated by Qantas. Together with its low-cost subsidiary Jetstar, it controls about 64% of domestic passengers, leaving only Virgin Australia as a realistic competitor. With this kind of market share and strong travel demand, it’s perhaps no surprise that Qantas’ profits are soaring.
The broader market, however, has been more mixed. The ASX 200 index remains largely flat, with gains and losses across different sectors cancelling each other out. Other notable movements include private sector business spending lifting slightly, while South32 shares fell despite a profit turnaround. Globally, companies like Nvidia saw after-hours declines, showing that even strong earnings don’t always guarantee smooth sailing for stocks.
But back to Qantas—the story here is one of recovery and resilience. From near-collapse to record profits, the airline has bounced back in a big way. It’s a fascinating example of how a company can navigate crises, government support, legal challenges, and market dominance to emerge stronger. And for shareholders, it’s been an incredible ride.
In short, Qantas is back in the sky, both in terms of its flights and its financial performance, showing that even the roughest turbulence can be weathered with the right strategy and a bit of luck.
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