Qantas and Jetstar aircraft at Sydney Airport. April 10, 2026, (Photo by Wolter Peeters/The Sydney Morning Herald, Getty Images)
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Australian airline stocks Qantas Airways It soared 4% on Thursday after the airline reported full-year results and unveiled a new business class suite amid rising demand for premium travel.
Qantas said demand for international travel remained strong as both Qantas and its low-cost airline Jetstar increased capacity and unit income, although higher fuel costs weighed on international earnings. International premium cabin revenue grew 15% in FY26, twice as fast as economy revenue.
The airline has announced new business class seats for its Airbus A321XLR aircraft, including a lie-flat bed and privacy door. The first of 16 aircraft equipped with the seats is scheduled to arrive in 2028. Additionally, the airline has introduced the latest business class seats for the new Boeing 787-9 Dreamliner.
The announcement comes after Qantas reported underlying pre-tax profits of A$2.06 billion ($1.48 billion) for the year ended June 30.
The airline expects domestic and international unit revenue to grow by 8% to 10% in the first half of FY27, despite an expected increase in fuel costs.
Citi maintained Qantas’ Buy rating after underlying pre-tax profits were around 3% above Visible Alpha consensus, highlighting Jetstar and its loyalty program Qantas Loyalty as outstanding performers.
