Qantas Airways Ltd (ASX: QAN) shares have had a bumpy ride in 2026, moving sharply in both directions at different points of the year.
After all that movement, the airline's shares are roughly flat year to date.
So, with Qantas trading around $10.57, do the shares offer good value this week?
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The valuation has my attention
I think the current valuation is looking quite attractive.
According to CommSec, consensus earnings per share estimates stand at 98.4 cents in FY26 and $1.16 in FY27.
That puts Qantas on a price-to-earnings ratio of around 10.7 times FY26 earnings and just over 9 times FY27 earnings.
The FY27 figure catches my attention. If Qantas can deliver anything close to that forecast, I think paying around nine times earnings for the shares looks reasonable.
There is also a solid operating business behind those numbers.
Qantas delivered a 5% increase in underlying profit before tax to $1.46 billion in the first half of FY26, while underlying earnings per share rose by 7%. Strong travel demand helped the group despite higher industry costs and the expense of introducing new aircraft.
There is more than one growth driver
One reason I remain positive on Qantas shares is that its earnings come from several parts of the group.
Jetstar produced particularly strong results during the first half. Its underlying earnings before interest and tax increased by 12% to $492 million, with the Australian domestic operation benefiting from strong demand and newer, more efficient aircraft.
Qantas Loyalty provides another source of growth that is less directly tied to selling airline seats.
The division generated $286 million of underlying earnings before interest and tax during the first half, while active members grew by 7%. I think the continued expansion of the loyalty ecosystem can become increasingly valuable as members earn and redeem points across more areas of their everyday spending.
Fleet renewal should also help over time. New aircraft can provide better fuel efficiency, lower operating costs, and opportunities to open routes that were previously difficult to serve economically.
Shareholders are getting some income too
Qantas has also returned to paying dividends, giving investors another potential source of return.
The company paid a fully franked interim dividend of 19.8 cents per share during FY26 and also announced an on-market share buyback of up to $150 million.
Looking forward, consensus estimates are for fully franked dividends of 39.6 cents per share in FY26 and 44.8 cents in FY27.
At around $10.57, those forecasts translate into dividend yields of approximately 3.7% and 4.2%, respectively.
There are still some things I would watch closely. Fuel costs rose sharply following conflict in the Middle East earlier this year, prompting Qantas to adjust parts of its network and increase some fares. Airlines remain exposed to fuel prices, economic conditions, and geopolitical disruption.
Investors will get a much clearer picture when Qantas releases its FY26 results on 27 August.
Foolish takeaway
I think Qantas shares offer good value this week.
The business is producing solid profits, Jetstar and Loyalty provide additional growth avenues, and consensus forecasts point to stronger earnings in FY27.
At around 9 times forecast FY27 earnings with a potential dividend yield above 4%, I would be comfortable buying Qantas shares at current levels.
