Qantas Airways reported a 5% year-on-year jump in first-half underlying profit to A$1.46 billion, driven by robust domestic travel demand and its fleet modernization. Domestic EBIT surged 14% to A$1.05 billion as business and premium leisure segments thrived, with Jetstar's domestic performance leading the charge.

Jetstar's A320neo and A321LR aircraft scaling directly fueled a 38% EBIT increase, reflecting strong domestic leisure travel. However, international EBIT slipped 6% to A$463 million despite 5% capacity growth, weighed down by escalating engineering and wage expenses.

The carrier maintained shareholder returns with a 19.8-cent fully franked dividend and announced a A$150 million buyback, signaling confidence in sustained demand. Operational efficiency gains offset international headwinds, though cost pressures remain a watchpoint.

This performance underscores Qantas' strategic pivot toward high-yield domestic routes and newer, fuel-efficient planes. Profit resilience amid global aviation cost spikes highlights its competitive edge in Australia's recovery-driven market.