This article is based on an official press release from Qantas Group and summarizes additional market analysis.

Qantas Group Posts $1.46 Billion Profit for 1H26 Amidst Historic Fleet Renewal

The Qantas Group has released its financial results for the first half of the 2026 financial year (1H26), reporting a robust Underlying Profit Before Tax of $1.46 billion. This represents a 5% increase compared to the same period last year, driven largely by sustained domestic demand and the continued growth of its loyalty division.

Despite the profit growth and the announcement of significant shareholder returns, including a $300 million interim dividend and a $150 million share buy-back, market reaction has been mixed. According to market analysis following the announcement, Qantas shares dipped approximately 6-7%, reflecting investor caution regarding rising operational costs and the capital intensity of the airline’s ongoing fleet renewal program.

In a statement accompanying the results, the airline highlighted that while revenue climbed to $12.9 billion, the Group is navigating a complex environment of “cost escalation” within its international operations.

Financial Performance Overview

The Group’s financial health remains strong, with key metrics showing growth or stability across the board. According to the official media release, revenue increased by 6% to $12.9 billion. While Statutory Profit After Tax remained flat at $925 million, the Underlying Earnings Per Share (EPS) grew by 7% to 68 cents.

Shareholders are set to benefit from increased returns. The Group declared a fully franked interim dividend of 19.8 cents per share, payable on April 15, 2026. Additionally, an on-market share buy-back of up to $150 million was announced.

“The result was driven by robust domestic demand and the growing contribution of its loyalty division, offsetting a decline in international earnings caused by rising costs.”

— Qantas Group Media Release

Net debt was reported at $5.6 billion, landing squarely within the Group’s target range of $5.6 billion to $7.0 billion. Operating cash flow remained strong at $1.8 billion, effectively matching the net capital expenditure required for the airline’s massive fleet upgrades.

Segment Analysis: Domestic Strength vs. International Headwinds

The 1H26 results reveal a divergence in performance between the Group’s domestic and international operations.

Group Domestic

The domestic sector remains the profit engine for Qantas. Earnings Before Interest and Tax (EBIT) for the segment rose 14% to $1.05 billion. Revenue increased by 5% on a 4% capacity increase. The airline attributed this success to strong growth in business-purpose travel, particularly from the Western Australia resources sector, as well as premium leisure demand. The introduction of new A321XLR and A220 commercial aircraft is also credited with improving operational efficiency.

Group International

Conversely, Group International faced challenges, with EBIT falling 6% to $463 million. While revenue grew by 5%, aided by the return of an A380 and high premium cabin demand, profitability was squeezed by rising costs. Qantas cited elevated engineering expenses, higher wages, and training costs for new aircraft induction as primary drivers. Furthermore, the airline noted softer demand in the Economy cabin on Australia-US routes, prompting a strategic shift to replace the A380 with the Boeing 787 on the Melbourne-LAX route.

Qantas Loyalty

The Loyalty division continued its consistent upward trajectory, delivering an EBIT of $286 million, a 12% increase. Membership has expanded to 18.3 million, with points earned up by 10% and redemptions increasing by 17%. New initiatives, such as the “Classic Plus” flight rewards, have reportedly driven higher member engagement.

Strategic Fleet Renewal and Restructuring

Qantas is currently undertaking what it describes as the “largest fleet renewal in history.” During the first half of FY26, the Group took delivery of nine new aircraft. The pipeline remains aggressive, with another 30 aircraft expected to arrive over the next 18 months. These new assets are critical to the Group’s strategy; Qantas notes that new aircraft drove approximately 60% of Jetstar’s profitability increase through efficiency gains.

Significant portfolio adjustments were also announced regarding the Jetstar brand:

• Jetstar Asia (Singapore): The Singapore-based entity was closed in July 2025, with assets redeployed elsewhere in the Group.
• Jetstar Japan: Qantas announced its intention to sell its 33.3% stake in Jetstar Japan, signaling a retreat to focus capital on core domestic operations.

On the network front, Qantas announced its first direct flights from Sydney to Las Vegas and confirmed that Project Sunrise, ultra-long-haul flights using A350s, remains on track.

AirPro News Analysis

The market’s negative reaction to a record profit result highlights a shift in investor sentiment. While the headline profit of $1.46 billion is impressive, the underlying “cost stickiness” in the International segment is a valid concern. Inflation in airport charges and government fees, reportedly rising at double the rate of inflation, poses a long-term threat to margins.

Furthermore, the capital intensity of the fleet renewal program ($1.8 billion in capex for 1H26 alone) restricts free cash flow. Investors appear to be weighing the long-term efficiency benefits of the A321XLRs and A220s against the immediate reduction in cash available for aggressive capital returns. The decision to divest from Jetstar Japan suggests a disciplined approach to capital allocation, prioritizing high-yield domestic dominance over peripheral Asian market share.

Outlook for FY26

Looking ahead, Qantas expects Domestic revenue to increase by approximately 3% in the second half of the financial year. International revenue is forecast to grow between 1% and 3%. To combat inflationary pressures, the Group has set a transformation target of $400 million in cost and revenue benefits for FY26. The fuel bill for the second half is forecast at approximately $2.5 billion.

Frequently Asked Questions

When will the Qantas interim dividend be paid?

The interim dividend of 19.8 cents per share is payable on April 15, 2026.

Why did Qantas shares fall despite the profit?

Market analysts cited concerns over rising international costs and the high capital expenditure required for new aircraft, which impacts free cash flow.

What is happening with Jetstar Japan?

Qantas has announced its intention to sell its 33.3% stake in Jetstar Japan to focus resources on its core domestic operations.

Sources

• Qantas Newsroom

This article is based on an official press release from Etihad Airways.

Etihad Airways to Deploy Flagship A380 to Bangkok Starting October 2026

Etihad Airways has announced that its Airbus A380 will make its debut on the Abu Dhabi (AUH) to Bangkok (BKK) route later this year. Beginning October 25, 2026, the Airlines will upgrade one of its daily services to the double-decker aircraft, significantly increasing capacity on one of its most popular leisure routes ahead of the winter travel season.

The delivery marks the first time Etihad has operated the A380 to Thailand. The aircraft will replace the current equipment on the evening departure from Abu Dhabi, bringing the carrier’s most exclusive cabin products,including The Residence and First Apartments,to the Southeast Asian market.

A380 Schedule and Capacity Upgrade

According to the airline’s schedule, the A380 will operate the daily EY402 and EY403 rotation. The move is designed to support high demand for travel between Thailand, the Middle East, and Europe.

Flight Schedule (Effective October 25, 2026):

• EY402: Departs Abu Dhabi (AUH) at 21:20, Arrives Bangkok (BKK) at 06:35 (+1).
• EY403: Departs Bangkok (BKK) at 08:30, Arrives Abu Dhabi (AUH) at 12:20.

Arik De, Chief Revenue and Commercial Officer at Etihad Airways, highlighted the strategic importance of the route in the company’s announcement.

“We’ve seen huge excitement around where our next A380 would fly – and Bangkok has been one of the most requested destinations. It’s a city that blends energy, culture and world-class hospitality, making it the perfect match for our flagship aircraft.”

Arik De, Chief Revenue and Commercial Officer, Etihad Airways

Premium Cabins: The Residence and First Apartments

The return of the A380 introduces Etihad’s halo products to the Bangkok route. The aircraft features The Residence, a three-room private suite located on the upper deck. Accommodating up to two guests, it includes a living room, a separate bedroom, and an ensuite bathroom with a shower.

Additionally, the first-class cabin offers nine First Apartments. These private suites feature a leather lounge chair and a separate ottoman that converts into an 80-inch lie-flat bed. First Class guests also have access to the exclusive First shower room.

Business and Economy Configurations

The upper deck also houses 70 Business Studios, providing direct aisle access and fully lie-flat beds for every passenger. Between the First and Business cabins, passengers can access “The Lobby,” a serviced lounge and bar area designed for socializing during the flight.

On the main deck, the Economy cabin is configured with 68 Economy Space seats, which offer an additional four inches of legroom, and 337 standard Economy seats featuring fixed-wing headrests. In total, the aircraft accommodates nearly 500 passengers, offering a substantial capacity boost over the smaller widebodies typically used on this sector.

AirPro News Analysis

The decision to deploy the A380 to Bangkok underscores the route’s status as a heavy-volume leisure corridor. While many airlines have retired their superjumbos, Etihad has strategically reactivated its fleet to serve high-density markets like London, New York, and now Bangkok. The timing aligns with the peak winter holiday season, allowing Etihad to capture premium leisure traffic competing with regional rivals like Emirates, which also operates A380s into Bangkok.

Frequently Asked Questions

When does the Etihad A380 start flying to Bangkok?
The A380 service begins on October 25, 2026.

Which flights will be operated by the A380?
The A380 will operate flight EY402 from Abu Dhabi and the return flight EY403 from Bangkok.

Is The Residence available on this route?
Yes, The Residence is available for booking on the A380 service to Bangkok.

Sources

• Etihad Airways

This article is based on an official press release from HNTB and additional project data from Tampa International Airport.

HNTB Reaches 100% Design Milestone for Tampa International Airport’s Airside D

Infrastructure design firm HNTB has officially achieved the 100% design milestone for Airside D at Tampa International Airport (TPA), marking a critical step forward for the facility’s first new airside terminal in nearly 20 years. Working in collaboration with the Hillsborough County Aviation Authority (HCAA) and design-build partner Hensel Phelps, the team is now poised to advance the $1.5 billion project into full-scale construction.

The new terminal is a central component of the airport’s Master Plan, designed to accommodate the region’s rapid growth. According to HNTB, the design phase is now complete, setting the stage for a facility that balances operational efficiency with a distinct “sense of place” inspired by the Florida landscape.

Architectural Vision and Passenger Experience

Airside D will be the largest airside facility at TPA, spanning approximately 600,000 square feet. The design features a “daylight-driven” form with a continuous roof structure intended to guide passengers intuitively through the space. HNTB describes the architecture as being inspired by the movement of water and the region’s natural springs, utilizing changes in volume and light to assist with orientation.

In a press statement, Scott Steckler, aviation architecture managing principal at HNTB, emphasized the collaborative effort behind the milestone:

“Reaching the 100% design milestone reflects the dedication and collaboration of our entire project team and our partners at TPA and the HCAA. With the design phase now complete, we’re ready to advance into full construction and bring a shared vision to life.”

The terminal is organized to serve both domestic and international flights, integrating a Federal Inspection Services (FIS) facility for processing international arrivals. Key architectural features include:

• Glass Boarding Bridges: Designed to preserve views of the airfield and the surrounding bay during boarding and deplaning.
• Central Concessions Core: A daylit marketplace serving as the terminal’s social hub.
• Mezzanine Level: This upper level will house a new Delta Sky Club and a common-use lounge, offering expansive views of the airfield.

Capacity and Operational Timeline

The completion of the design phase allows the project to move into vertical construction later in 2026. The terminal is scheduled to open to the public in 2029. Once operational, Airside D will add 16 gates to the airport’s inventory, enabling TPA to increase its annual passenger capacity from approximately 25 million to an estimated 35 million by 2037.

According to project details released by TPA, the facility will include modern amenities tailored to diverse traveler needs, such as a dedicated children’s play area, a sensory room for travelers needing a quiet environment, and outdoor terraces. The project is being delivered through a progressive design-build model led by Hensel Phelps, with HNTB serving as the lead architect and Gensler as the associate architect.

AirPro News Analysis

The finalization of the Airside D design signals a shift in Tampa International Airport’s strategy from recovery to aggressive expansion. By integrating international processing capabilities directly into the new airside, TPA is positioning itself to compete more effectively for transatlantic and Latin American routes that might otherwise favor larger hubs like Miami or Orlando. The inclusion of premium lounge space and sensory-friendly amenities also reflects a broader industry trend where airports are competing on passenger experience (“CX”) rather than just connectivity.

Frequently Asked Questions

When will Airside D open?
Construction is expected to be completed in late 2028, with the facility opening to passengers in 2029.

Which airlines will operate out of Airside D?
While specific gate assignments can change, the inclusion of a large Delta Sky Club suggests Delta Air Lines will be a primary tenant. The terminal is equipped to handle both domestic and international carriers.

What is the budget for the project?
The total project cost is estimated at approximately $1.5 billion, funded through a combination of bonds, grants, and airport revenues.

Sources

• HNTB
• Archinect
• Tampa International Airport