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

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.


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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.

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