Qantas Profit Falls 14% on Fuel Costs

Qantas' full-year profit has fallen 14% due to high fuel costs, with the airline's pre-tax profit reaching $2.06bn, the lowest in four years. The company will retire its A380s from 2028, four years ahead of schedule, as a result of high maintenance costs and the arrival of new next-gen jets.

The retirement of the A380s is a significant move for Qantas, which has operated the aircraft since 2008. The airline's decision is also driven by the increasing costs of fuel, which have been exacerbated by the US war on Iran, resulting in a $610m increase in fuel costs.

Despite the challenges, Qantas international revenue grew 8% in the year to June, while Jetstar International expanded its capacity by 11% and achieved a 14% revenue increase. Additionally, Qantas' loyalty scheme saw its underlying earnings grow by 12% to $625m.

The airline has also announced plans to introduce a carry-on luggage charge from next year, as part of its efforts to manage costs and improve efficiency.

## Why it matters The retirement of the A380s marks a significant shift in Qantas' fleet strategy, as the airline looks to replace the aircraft with new next-gen jets. This move is likely to have implications for the airline's operations and customer experience, as the A380s have been a popular choice for long-haul flights. The impact of high fuel costs on Qantas' profit also highlights the challenges faced by the airline industry in managing costs and maintaining profitability.

## What happens next Qantas will begin retiring its A380s from 2028, with the new next-gen jets set to replace them in the airline's fleet. The introduction of the carry-on luggage charge will also be implemented from next year, as part of the airline's efforts to manage costs and improve efficiency. As the airline industry continues to evolve, Qantas will need to navigate the challenges of high fuel costs, changing customer demands, and increasing competition in the market.