Qantas Bulls See Resilient Earnings, Strong Balance Sheet

Dow Jones
Aug 27

0505 GMT - Qantas Airways' bulls at Jefferies see earnings resilience and balance-sheet strength among the positives in the Australian carrier's annual results. Analysts at the investment bank say the airline's underlying pretax profit for the 12 months through June was 3.6% ahead of their forecast and 2% above consensus. However, they note that expectations had lowered against a backdrop of high fuel costs. Nonetheless, they sound positive on the results. In a note to clients, the analysts highlight Qantas's continuing capital returns and its fiscal 2027 expectation of 8%-10% growth in average revenue per seat kilometer for both domestic and international operations. Jefferies has a last-published buy rating on the stock and a target price of 11.91 Australian dollars. Shares are up 4.0% at A$9.59.

 

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