Australia’s Qantas reports lower FY2024-25 fuel costs

Market: Biofuels, Oil products
28/08/25

Australian carrier Qantas Airways reported lower fuel costs and higher fuel consumption for its July 2024-June 2025 fiscal year.

The airline group's passenger carrying capacity measured by available seat kilometres rose by 8pc from the previous year to 152,804, with growth in international capacity behind the spike.

This saw the group's overall fuel consumption grow by 6pc to 84,800 b/d from 79,600 b/d in 2023-24 (see table).

Group fuel costs including jet fuel and sustainable aviation fuel (SAF) dropped by 6pc to A$5bn ($3.25bn) from A$5.32bn a year earlier. But the airline warned that volatility in oil markets remains due to elevated Middle East tensions.

Argus' jet-kerosine Singapore assessment averaged $87.88/bl in 2024-25, down by 17pc from $105.35/bl in 2023-24. The price closed on 27 August at $84.05/bl, up from $83.60/bl on 20 August.

Qantas expects its July-December 2025 fuel costs to be A$2.6bn, based on forecast consumption of about 88,000 b/d including SAF, and assumes a market fuel price of around A$134/bl excluding hedging, into-plane costs, SAF premiums and carbon credit costs.

More SAF from overseas airports will be used while the carrier works with government and industry to establish a SAF industry in Australia, chief executive Vanessa Hudson said on 28 August. Qantas used 181 b/d of SAF in 2024-25, around 0.2pc of the airline's total fuel consumed, which is steady on the year.

Qantas is raising its SAF uptake from Los Angeles airport, the company said, with an agreement to use more than 100mn litres/yr over the next three years from August.

Qantas, through its A$400mn climate fund, has now committed more than A$100mn to SAF and other decarbonisation projects, the firm said.

The firm's 2024-25 underlying profit before tax was A$2.39bn, up from A$2.08bn a year earlier and after it reported July-December 2024 profit at A$923mn. Group revenue of A$23.82bn was also higher than A$21.94bn posted in 2023-24.

By Tom Major

Qantas fuel consumption			(b/d)
	2024-25	2023-24	%

Domestic	20,600	20,500	0
International	37,000	34,500	7
Freight	3,100	3,500	-12
Jetstar	24,000	20,900	14
SAF	181	172	5
Total	84,800	79,600	6
Source: Qantas

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Viewpoint: Japan's hybrid EV use keeps gasoline in mix

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Australia’s Qantas reports lower FY2024-25 fuel costs

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