kabarsula Qantas, Virgin post strong earnings despite fuel cost surge: ACCC bandar SLOT INDONESIA

Australia’s two largest airline groups have posted strong financial results despite significantly higher jet fuel prices, according to the ACCC’s latest Domestic Airline Competition in Australia report.

The Qantas Group reported underlying earnings before interest and tax of approximately $2.35 billion, down 11 per cent on 2024–25. Virgin Australia reported underlying earnings of $753 million, up 13.4 per cent on the previous year.

The results come despite jet fuel prices remaining significantly higher than before the Middle East conflict, with prices nearly 50 per cent higher in late August 2026 than in February 2026.

“Despite significantly higher fuel costs, both the Qantas Group and Virgin Australia continued to generate substantial earnings in 2025–26,” ACCC Chair Gina Cass-Gottlieb said. “These results highlight the financial resilience of the two largest operators in Australia’s highly concentrated domestic aviation market.”

Both groups’ performance was underpinned by resilient passenger demand, higher fares, capacity adjustments and fuel-hedging arrangements that softened the short-term impact of rising costs.

Airfares climb as demand holds firm

Average domestic airfares ran higher than a year earlier across recent months – up 3.5 per cent in May and four per cent in June, before moderating in July.

Both major groups expect fuel costs to stay elevated and have flagged further capacity cuts alongside higher revenue per seat flown.

“With resilient demand and high load factors, the announced capacity reductions may place upward pressure on airfares, depending on airlines’ commercial decisions and fuel prices,” Cass-Gottlieb said.

Domestic passenger volumes held stable through the quarter to July 2026, though slightly down year-on-year, with winter school holiday leisure travel a key driver of demand. Seat capacity fell 2.3 per cent in both May and June compared with the prior year, with June recording the lowest capacity for that month since 2022 – pushing load factors above 80 per cent.

On-time performance slips, cancellations stay low

Industry-wide on-time performance dropped from 82.1 per cent in May to 78.4 per cent in July, below the long-term average of 80.5 per cent. Qantas was the only carrier above that benchmark in July, at 81.4 per cent, marking six consecutive months as the strongest performer on punctuality.

Rex (76.9 per cent), Virgin Australia (76.3 per cent) and Jetstar (72.5 per cent) all came in below the long-term average, though Rex’s result was its best since January 2026.

Cancellations, meanwhile, held at 1.5 per cent across May, June and July – the longest run below the long-term average of 2.2 per cent since 2018.

Western Sydney Airport eyed as competition boost

Western Sydney International Airport opened for freight operations in July 2026, with passenger services set to begin in October.

“The new airport is an exciting development for Australian aviation and in particular for people in the wider Sydney catchment, who will benefit from new services and greater choice,” Cass-Gottlieb said, adding that its 24-hour operations and slot access could eventually make it easier for new entrants to compete.

The ACCC’s quarterly monitoring of Jetstar, Qantas, Rex and Virgin Australia currently runs to December 2026, though the Government flagged in the 2026–27 Federal Budget its intention to extend the function to December 2029.