Qantas Airways Limited (QAN.AU) stock is soaring 5.31% in Thursday's trading session following the release of its impressive fiscal year 2025 financial results and strategic business announcements. The Australian flag carrier reported a robust underlying profit before tax of A$2.39 billion, slightly exceeding market expectations and marking its second-best annual performance.
The strong financial results were driven by robust travel demand across both domestic and international routes. Qantas posted an underlying earnings per share of AU$1.10, up from AU$0.88 a year earlier, on revenue of AU$23.82 billion. In a move that has pleased investors, the airline declared a fully franked final dividend of 16.5 Australian cents per share and a special dividend of 9.9 Australian cents per share, marking its highest full-year dividend payout in 17 years.
Adding to the positive sentiment, Qantas announced an order for 20 additional Airbus A321XLR aircraft, with 16 of these featuring lie-flat Business seats. This strategic fleet expansion aligns with the company's growth plans and its focus on enhancing premium offerings. The airline also provided an optimistic outlook, expecting continued strong travel demand into the first half of fiscal 2026, with projected increases in both domestic and international unit revenue.