Shares of Australian carrier Qantas Airways jumped 4% on Thursday after the airline reported full-year earnings and unveiled new business-class suites amid growing demand for premium travel.
Qantas said demand for international travel remained strong, with both Qantas and its low-cost carrier Jetstar increasing capacity and unit revenue, although higher fuel costs weighed on international earnings. International premium cabin revenue grew 15% in fiscal 2026, twice the pace of economy revenue.
The airline unveiled new business-class seats for its Airbus A321XLR fleet, including lie-flat beds and privacy doors. The first of 16 aircraft fitted with the seats is expected to arrive in 2028. Additionally, it introduced updated business-class seats for its new Boeing 787-9 Dreamliners.
The announcements came as Qantas reported underlying profit before tax of A$2.06 billion ($1.48 billion) for the year ended June 30.
The airline expects domestic and international unit revenue to rise 8% to 10% in the first half of fiscal 2027, even as fuel costs are expected to increase.
Citi maintained its "buy" rating on Qantas after underlying profit before tax came about 3% ahead of Visible Alpha consensus, highlighting Jetstar and its loyalty program, Qantas Loyalty, as standout performers.