Qantas Airways Ltd (ASX: QAN) shares are flying higher today.
Shares in the S&P/ASX 200 Index (ASX: XJO) airline closed yesterday trading for $11.11. In morning trade on Thursday, shares are changing hands for $12.29 apiece, up 10.6%.
For some context, the ASX 200 is down 0.1% at this same time.
This follows the release of Qantas' full-year financial results (FY 2025).
Here's what's catching ASX investor interest.
Qantas shares soar on rising profits and payouts
Investors are bidding up Qantas shares after the company reported an 8.6% year-on-year increase in revenue and other income, to $23.82 billion.
Capital expenditure of $3.9 billion was up 22% as well. But that didn't keep Qantas from posting another year of profit growth.
The ASX 200 reported an underlying profit before tax of $2.39 billion, up 15% from FY 2024. Statutory profit after tax of $1.61 billion was up 28%.
And both Qantas and its wholly owned subsidiary Jetstar achieved improved on time performance ratings, marking their best on time performance since 2019.
The year also saw 17 new aircraft delivered, with Qantas reporting it had placed orders for 20 additional A321XLR aircraft, 16 with lie-flat business seats, in the new financial year.
On the passive income front, Qantas shares are surging after management declared a fully franked final dividend of 16.5 cents per share and a fully franked special dividend of 9.9 cents per share. This brings the final Qantas dividend payout to 26.4 cents per share, or a total of $400 million.
If you'd like to bank that passive income, you'll need to own shares at market close on 15 September. Qantas trades ex-dividend on 16 September. You can then expect to be paid on 15 October.
Over the 12 months, Qantas also completed on-market share buybacks totalling $431 million.
The ASX 200 airline ended the financial year with $12.2 billion of liquidity, including $2.2 billion in cash. The airline's net debt increased to $5.0 billion.
What did management say?
Commenting on the results lifting Qantas shares today, CEO Vanessa Hudson said:
Continuing strong demand across all market segments, combined with our dual brand strategy, helped the Group grow earnings. Qantas and Jetstar carried four million more customers during the year, while our Loyalty business grew as frequent flyers engaged with the program more than ever before.
Our strong financial performance is enabling significant investment in new aircraft and customer initiatives, helping deliver better operational performance and customer satisfaction across both airlines…
Despite the strong performance across the group, we saw some costs rise above the rate of inflation, which reduced the benefits of lower fuel.
What's next for Qantas shares?
Looking at what could impact Qantas shares in the year ahead, Hudson said:
Direct flights from the east coast of Australia to London and New York are also a step closer to reality, with the first Project Sunrise A350-1000ULR aircraft to enter the final assembly line in the coming months, and the first aircraft delivery expected in October next year.
The airline expects domestic revenue to increase 3% to 5% year-over-year in the first half of FY 2026. International revenue is expected to increase by 2% to 3% in H1.
First-half fuel costs are forecast to be $2.6 billion.
Management expects Qantas Loyalty to grow underlying EBIT by 10% to 12% across FY 2026.
With today's big intraday boost factored in, Qantas shares are up 94.5% since this time last year, not including dividends.
