Qantas shares hit on revenue downgrade as softer business travel hurts

Qantas shares are down sharply after the carrier flagged a dip in expected revenue from its domestic business, citing reduced business travel, higher fuel costs and additional carbon compliance costs.

Qantas, which is holding its annual general meeting in Brisbane later on Friday, said it was now forecasting revenue growth of about 3 per cent for the first half of the 2026 financial year - the bottom end of the 3 per cent to 5 per cent range predicted with its annual results in August.

Demand from holidaymakers, small business and resources companies remained strong, it said, but “non-resource corporate demand continues to grow but at a slower rate than previously forecast”.

“We are adjusting domestic capacity in the second half to match the demand profile we are seeing,” Qantas chief executive Vanessa Hudson said in her speaking notes for the AGM.

Qantas shares were nearly 4 per cent lower at $9.78 as at 8.25am.

Expected growth in first-half revenue from the group’s international services is unchanged at 2 per cent to 3 per cent but capacity is seen “slightly lower” than the August guidance of 4 per cent.

Also, fuel prices for the December half-year are now seen at $2.62 billion, up from a flagged $2.6b, including about $25m of additional non-cash carbon costs.