Qantas Airways reported a 14% drop in annual profit as soaring fuel costs linked to the U.S.-Iran conflict added A$610 million to its expenses, pushing total fuel costs above A$5.7 billion. The airline expects fuel costs of A$3.6 billion in the first half of the current fiscal year, despite mitigation efforts that reduced the conflict’s impact to A$420 million. Underlying pretax profit fell to A$2.06 billion, while net profit declined 20% to A$1.29 billion.

Revenue rose 7.1% to A$25.52 billion amid strong domestic and international demand. Qantas has redeployed 16,000 seats to European routes, boosting international capacity 7% and revenue 8.3% to A$9.925 billion. The carrier is accelerating fleet renewal, retiring A380s in 2028 and investing in more fuel‑efficient aircraft.

Capital expenditure increased 3% to A$3.97 billion, and depreciation is projected to rise to A$2.40 billion. The board raised the regular dividend to 19.8 cents per share, though the previously announced A$150 million share buyback will not be completed.