Qantas Airways Ltd (QAN) $9.67

QAN -9.2%:  reported underlying pretax profit for the first half-year that beat expectations, but the devil was in the detail:

1H26 Highlights

• Underlying pretax profit $1.46 billion, +5.1% YoY – consensus was $1.43 billion
• Net income $925 million, +0.2% YoY, consensus was $1.03 billion
• Revenue & other income $12.90 billion, +6.3% YoY, consensus was $12.97 billion.
• The company also announced a buyback of up to $150mn – not enough to turn the dial.

However, Qantas’ 1H result disappointed the market with its shares down the most in almost a year after earnings from its international unit unexpectedly fell and the company flagged rising costs from wages and aircraft maintenance.

As a sidenote, in a change to its loyalty program, Qantas will begin to allow members to spend their way to earning status credits through everyday spending, rather than relying on flying alone. Status credits allow lounge access, priority boarding and a more generous baggage allowance, no matter the class of ticket being flown on – Status credits differ from regular Qantas frequent flyer points.