Stock Spotlight: Qantas Airways Limited (ASX:QAN)
This week's Stock Spotlight is ASX-listed Qantas Airways Limited.
About Qantas Airways Limited
Qantas operates international and domestic air transportation services, the sale of worldwide and domestic holiday tours and associated support activities including catering, information technology, ground handling and engineering and maintenance.
Source: ASX
Key Stats
Key Stats
Source: Yahoo Finance. Data as of 31/07/25.
Price Performance
Growth Potential
- Buoyant conditions in the domestic leisure market and improving corporate travel demand.
- Dual brand strategy is being executed well given the strong Jetstar results.
- Return of a fully franked dividend policy is a positive.
- EV/EBITDA multiple is now back at the top end of the long-term trading range.
- The strength in the balance sheet and expected future growth in the business will continue to support the increase in fleet investment, ongoing customer and people initiatives, and future shareholder returns. Net debt remained at $4.1bn as at 31 December 2024 with the acquisition of new aircraft and return of capital to shareholders through on-market share buy-backs. Net debt is expected to be at or below the middle of the target range for FY25, which is forecast to be $4.7 - $5.8bn by FY25-end, with capex of $3.8 - $3.9bn for the year weighted to 2H25.
- Aiming for all segments to deliver return on invested capital > weighted average cost of capital.
- Strong position in the domestic market (Qantas Domestic and Jetstar continue to remain the two highest margin earning airlines in the domestic market).
- Jetstar is well positioned for growth and rising demand in Asia.
- Partnership with Woolworths for Loyalty bodes well for membership and earnings.
- Oil price hedging in FY25 could contribute to performance.
- Increased competition in the international segment.
- Relative to peers, strong balance sheet strength; investment grade credit rating.
Key Risks
- Disasters that could hurt the QAN brand.
- Earnings recovery gets pushed out again due to travel restrictions or return of another Covid-19 variant.
- Ongoing price led competition forcing QAN to cut prices affecting margins.
- Leveraged to the price of oil.
- Adverse currency movements result in less travel.
- Labour strikes.
- Depressed economic conditions leading to less discretionary income to spend on travel.
- Dividend being cut again.
Subscribe to our newsletter
Disclaimer: This article does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
Speak to an Advisor
The AI trade is being forced to rethink the pace of progress. Here is what investors should watch across Nvidia, chips, AI spending, software and adoption.
Copper is at a record high, yet the global market still has a surplus. So where is all the copper, and why is it becoming harder to find?
Sharewise CEO Alex Perry sat down with ausbiz to unpack how the platform approached FY26, a year in which it reported an ASX return of almost 11% and a US return above 32%. The conversation ranged from the AI infrastructure theme to specific names on Perry's radar in resources and quantum computing. Here's a rundown of the key points.
Warsh gave markets a framework, not a forecast. What his first Jackson Hole keynote means for inflation, rates, forward guidance and the outlook for equities.
Get the latest on Impact Minerals (ASX: IPT), including stock performance, technical analysis, forecasts & key insights. See if IPO supports your goals.
Get the latest on Valiant Gold (ASX: VAL) with our share price, technical analysis, forecasts & key insights. See if this ASX gold stock fits your investment goals.
Learn about Percheron Therapeutics (ASX: PER). Offering share price, technical analysis, forecasts & insights. See if this ASX biotech stock fits your goals.
Brent crude hits US$91 as US-Iran talks stall and Strait of Hormuz disruption persists. What's driving the move and what comes next for oil
The RBA holds rates at 4.35% as inflation remains elevated. Here’s what the August decision means for the Australian economy, markets and key sectors.
As AI becomes cheaper to deploy, could the next investment winners shift beyond chipmakers? Explore how the AI cost race is redefining future tech leaders.
