Qantas Airways (QABSY)
OTHER OTC:QABSY
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Qantas Airways
(OTC:QABSY)
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Rating:68Neutral
Price Target:
$31.00
▼(-11.93% Downside)
Action:ReiteratedDate:03/02/26
The score is driven primarily by mid-range financial strength constrained by leverage and uneven free-cash-flow trends, balanced by a favorable valuation (low P/E and strong yield). Earnings-call commentary adds support through solid H1 performance and shareholder returns, while technicals are neutral and do not add meaningful momentum.
Positive Factors
Fleet renewal driving unit-cost and utilization gains
Accelerated fleet renewal (A321LR/A320neo scale) has materially improved Jetstar unit economics and utilization. New, more efficient aircraft lower per-seat costs, raise margins sustainably and create a structural cost advantage versus older fleets, supporting durable earnings improvement.
Negative Factors
High leverage and weak equity ratio
A structurally high debt load and weak equity ratio increase financial rigidity and refinancing risk during economic stress. Heavy reliance on debt limits flexibility for further fleet investment or shock absorption, raising the long-term risk profile despite current cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Fleet renewal driving unit-cost and utilization gains
Accelerated fleet renewal (A321LR/A320neo scale) has materially improved Jetstar unit economics and utilization. New, more efficient aircraft lower per-seat costs, raise margins sustainably and create a structural cost advantage versus older fleets, supporting durable earnings improvement.
Read all positive factors
Qantas Airways (QABSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.87B
Dividend Yield4.57%
Average Volume (3M)160.00
Price to Earnings (P/E)4.3
Beta (1Y)0.79
Revenue Growth7.09%
EPS Growth37.26%
CountryUS
Employees20,000
SectorIndustrials
Sector Strength72
IndustryAirlines, Airports & Air Services
Share Statistics
EPS (TTM)2.41
Shares Outstanding302,639,860
10 Day Avg. Volume0
30 Day Avg. Volume160
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)21.26
Price to Sales (P/S)0.71
P/FCF Ratio36.91
Enterprise Value/Market Cap2.31
Enterprise Value/Revenue0.85
Enterprise Value/Gross Profit3.13
Enterprise Value/Ebitda4.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.97
Revenue Forecast (FY)$17.87B
Qantas Airways Business Overview & Revenue Model
Company Description
Qantas Airways Limited provides air transportation services in Australia and internationally. The company operates through Qantas Domestic, Qantas International, Jetstar Group, and Qantas Loyalty segments. It offers passenger flying, and air cargo...
How the Company Makes Money
Qantas primarily makes money by selling air travel and related services across its full-service and low-cost airline brands. Its largest revenue stream is passenger revenue from ticket sales on domestic and international routes, with pricing influ...
Qantas Airways Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture driven by strong domestic demand, an accelerating fleet renewal that is already delivering measurable benefits (notably at Jetstar), rising EPS and operating cash flow, and enhanced shareholder returns (increased dividend and buyback). Material near-term headwinds were flagged for Qantas International and group costs — including engineering, entry-into-service costs, FX pressures and Same Job Same Pay — which are weighing on international EBIT and create execution and cost-management priorities for management. Overall, positive momentum in core domestic and loyalty businesses and clear fleet-driven upside outweigh the transitory and structural cost challenges highlighted.Positive Updates
Underlying Profit and EPS Growth
Underlying profit before tax of $1.46 billion for the half, up 5% year-on-year (increase of $71 million). Underlying earnings per share $0.68, up 7% versus H1 FY25. Operating margin for the group 12.3%.
Negative Updates
Group International Earnings Pressure
Group International (ex. Jetstar Asia & Japan) underlying EBIT was impacted, down 6% year-on-year due to higher engineering costs, industry pressures, elevated operational wages and entry-into-service training costs for new aircraft.
Read all updates
Q2-2026 Updates
Positive
Negative
Underlying Profit and EPS Growth
Underlying profit before tax of $1.46 billion for the half, up 5% year-on-year (increase of $71 million). Underlying earnings per share $0.68, up 7% versus H1 FY25. Operating margin for the group 12.3%.
Read all positive updates
Company Guidance
Qantas reported strong H1 results (underlying PBT $1.46bn, +5% y/y; underlying EPS $0.68, +7%; operating cash flow $1.8bn; net debt $5.6bn; net capex H1 $1.8bn) and gave forward guidance that Group RASK is expected to rise ~3% in H2 (Group International RASK +1%–3%), FY26 net capex is expected at $4.1–$4.3bn and FY27 at $5.1–$5.4bn (including the first four Project Sunrise aircraft), the group transformation target remains ~$400m for the full year (weighted to H2), entry‑into‑service/fleet transition costs are expected to increase by ~$20m vs H2 FY25, the gross impact of Same Job Same Pay for FY26 is ~ $95m (up $15m vs H2 FY25), Qantas Loyalty underlying EBIT is forecast to grow 10%–12% for FY26, net freight revenue in H2 is expected in line with H2 FY25, management expects seasonality to normalize toward a ~60/40 H2 skew, and the Board has approved an interim shareholder distribution of up to $450m (fully franked base dividend $300m, +$50m; on‑market buyback up to $150m).Qantas Airways Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
60
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 24.18B | 23.41B | 21.62B | 19.82B | 9.11B | 5.93B |
| Gross Profit | 6.56B | 12.76B | 11.46B | 7.00B | 1.91B | 1.57B |
| EBITDA | 4.23B | 4.54B | 3.90B | 4.52B | -70.00M | -176.00M |
| Net Income | 1.59B | 1.60B | 1.25B | 1.75B | -860.00M | -1.73B |
Balance Sheet | ||||||
| Total Assets | 23.87B | 23.36B | 20.56B | 20.35B | 19.65B | 17.88B |
| Cash, Cash Equivalents and Short-Term Investments | 1.85B | 2.36B | 1.98B | 3.25B | 3.98B | 2.22B |
| Total Debt | 9.43B | 7.96B | 6.59B | 6.73B | 7.23B | 8.23B |
| Total Liabilities | 22.52B | 22.57B | 20.27B | 20.34B | 19.84B | 17.36B |
| Stockholders Equity | 1.34B | 778.00M | 289.00M | 5.00M | -197.00M | 513.00M |
Cash Flow | ||||||
| Free Cash Flow | -463.27M | 448.00M | 680.00M | 2.49B | 1.75B | -1.15B |
| Operating Cash Flow | 3.84B | 4.25B | 3.44B | 5.05B | 2.65B | -407.00M |
| Investing Cash Flow | -4.13B | -3.81B | -2.89B | -2.59B | -240.00M | -722.00M |
| Financing Cash Flow | -173.70M | 42.00M | -2.01B | -2.63B | -1.31B | -181.00M |
Qantas Airways Technical Analysis
Negative
35.20
Price Trends
32.94
Negative
32.67
Negative
33.61
Negative
Market Momentum
-1.03
Negative
43.84
Neutral
55.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QABSY, the sentiment is Negative. The current price of 35.2 is above the 20-day moving average (MA) of 29.80, above the 50-day MA of 32.94, and above the 200-day MA of 33.61, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 43.84 is Neutral, neither overbought nor oversold. The STOCH value of 55.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for QABSY.
Qantas Airways Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $13.49B | 10.91 | 135.39% | 3.50% | 6.81% | 58.22% | |
71 Outperform | $29.82B | 10.91 | 24.13% | ― | 4.24% | 20.29% | |
69 Neutral | $43.60B | 8.99 | 27.63% | 0.96% | 4.33% | -1.58% | |
68 Neutral | $8.87B | 4.30 | 151.46% | 4.57% | 7.09% | 37.26% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $18.47B | 50.61 | 5.33% | 1.73% | 0.65% | ― | |
46 Neutral | $7.16B | 25.57 | -2.76% | ― | 1.27% | 118.64% |
* Industrials Sector Average
QABSY
Qantas Airways
29.55
6.19
26.48%
DAL
Delta Air Lines
66.76
29.92
81.23%
LUV
Southwest Airlines
37.60
12.15
47.76%
UAL
United Airlines Holdings
92.21
33.44
56.90%
AAL
American Airlines
10.84
1.13
11.64%
LTM
LATAM Airlines Group SA Sponsored ADR
49.19
22.91
87.18%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.