Qantas has reported its lowest annual profit in four years, as higher jet fuel costs and intense competition weighed on the Australian airline's earnings.
The carrier's underlying profit before tax fell to A$1.25bn (£650m) for the year to 30 June, down from A$2.47bn a year earlier. The result was below market expectations of about A$1.4bn.
Fuel costs and competition squeeze margins
The airline said jet fuel prices had risen sharply following the escalation of the conflict in the Middle East, adding about A$500m to its fuel bill. At the same time, capacity increases by rival carriers, particularly in the domestic market, had put pressure on fares.
Qantas said it had responded by cutting costs and redeploying aircraft to more profitable routes, but acknowledged that the competitive environment was likely to persist.
Outlook and shareholder returns
The company said it expected the challenging conditions to continue into the current financial year, with no immediate relief from fuel prices. It announced a final dividend of 12 cents per share, bringing the full-year payout to 24 cents, down from 32 cents the previous year.
Qantas said it remained focused on operational reliability and customer service, while managing costs and capacity in response to market conditions.
