Qantas has reported its lowest pre-tax underlying profit in four years, blaming higher fuel costs associated with the Iran conflict, and says it may raise fares further while demand remains strong. The airline also plans to increase ancillary charges at Jetstar, signalling that passengers could face more fees beyond the advertised ticket price.

Underlying pre-tax profit fell to A$2.06bn in the year to 30 June, despite Qantas revenue rising 7% to A$25.5bn and Jetstar generating more than A$1bn from non-seat fees. Jetstar’s median fare was about A$150, up from nearly A$100 in 2022, and it intends to introduce further add-ons after its new overhead carry-on luggage charge. Qantas will retire older A380 aircraft from 2028, four years earlier than planned, and may buy up to 20 additional aircraft from 2030.