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Qantas is warning of slowing domestic travel growth and higher fuel prices that weighed on its financial outlook. In its latest results, Qantas delivered $2.39bn in underlying profits before tax. The airline said it was expecting domestic travel to lift, but by 3 per cent in the 2026 financial year, which would put it at the lower end of previous guidance. While the growth in domestic travel is slowing, international travel growth is expected to remain unchanged at 2 to 3 per cent, with demand stable across the key market. Shares fell 2.65 per cent to $9.91 shortly after the announcement. At the same time, the airline is also flagging higher fuel costs. “Geopolitical events continue to create fuel price volatility, with jet refining margins remaining elevated,” the statement said. “At current prices, the fuel cost for 1H26 is expected to be approximately $2.62bn. “This includes approximately $25m of additional non-cash carbon costs in 1H26.” The airline giant also enhanced the onboarding experience across its domestic and short-haul international fleet. Part of this is the introduction of Qantas Economy Plus, a new cabin product designed to give customers extra choices, including leg room seating, priority boarding and priority access to overhead baggage space. Qantas chief executive Vanessa Hudson said Qantas Economy Plus would give customers greater flexibility with how they chose to travel and provide additional value for frequent flyers. “This is an evolution of our Economy offering and delivers more choice for our customers while recognising our most loyal frequent flyers with expanded benefits in the areas we know they value the most,” Ms Hudson said. “We’re always looking for ways to enhance the on-board experience and maximise comfort for our customers. We believe this new seating product will be popular with our corporate and leisure travellers when it launches next year.”
