ASX airline shares like Qantas Airways Ltd (ASX: QAN) are a popular choice for income-seeking investors.
The company is a household name operating in a resilient market. The airline has also returned to paying meaningful, fully franked dividends this year, after it suspended payments during COVID-19.
If Qantas' earnings continue growing and its share price appreciates, investors could potentially get a combination of both capital growth and franked dividends.
But what exactly would it entail to earn the passive income you want?
Let's take a look at what it takes to earn $10,000 per year of passive income from Qantas shares.
Image source: Getty Images
What passive income does Qantas pay its shareholders?
First, we need to understand what dividends the airline giant pays its shareholders.
Qantas resumed its twice-yearly dividend payments in 2025 after a break between 2020 and 2024. The company historically pays its shareholders an interim dividend in April and a final one in October, sometimes with an additional special dividend.
The company paid a fully-franked interim dividend of 19.8 cents per share in April.
Last week, as part of its FY26 results announcement, the airline declared a fully franked final dividend of 19.8 cents per share, to be paid to shareholders in October.
That comes to a total FY26 dividend of 39.6 cents per security.
At the time of writing, this translates to a dividend yield of around 4.2% for FY26.
In FY27, Qantas is forecast to pay an annual dividend per share of 44.8 cents per security. At the time of writing, that translates into a grossed-up dividend yield of 4.8%, including franking credits.
How many Qantas shares do I need to generate $10,000 of passive income every year?
Using the FY26 total dividend payment of 39.6 cents per share, investors would need to own around 25,253 shares in order to earn around $10,000 of passive income.
Assuming the 44.8 cent per share dividend forecast for FY27 is correct, investors would need to buy around 22,322 shares to earn the same annual passive income.
How much would that cost?
At the time of writing, Qantas shares are trading for $9.42 a piece.
That means, in order to buy the 25,253 shares needed for $10,000 of annual passive income in FY26, you would need to invest roughly $238,000.
For the 22,322 shares needed for the same income in FY27, investors would need to invest around $211,000.
It's not a small sum, but it could be worth it in the long run.
And remember, you don't need to invest the entire amount in one go. Start off small and enjoy the benefit of compound growth.
What do the experts expect next from Qantas shares?
Market experts are incredibly bullish on Qantas shares over the next 12 months, with many forecasting significant upside.
TradingView data shows the majority (14 out of 15) have a buy/strong buy rating on the airline shares.
The $11.72 average target price implies a potential 24% upside over the next 12 months, at the time of writing. Even the minimum $10.40 target price implies the shares could jump another 10%.
