Qantas Airways (ASX:QAN) Effective Interest Rate on Debt %: 4.40% (As of Dec. 2025)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ASX:QAN Qantas Airways Ltd ASX:QAN
80 GF Score
Price A$10.69
GF Value A$11.13
Valuation Fairly Valued
! 4 Warning Signs
View Full Analysis

What is Qantas Airways Effective Interest Rate on Debt %?

Qantas Airways ASX:QAN +0.85% 80 Effective Interest Rate on Debt % is 4.40% as of Dec. 2025. GuruFocus rates ASX:QAN with a GF Score™ of 80/100 and a GF Value™ of A$11.13 (Fairly Valued). The stock has 4 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Qantas Airways's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was A$356 Mil. Qantas Airways's average total debt for the quarter that ended in Dec. 2025 was A$8,099 Mil. Therefore, Qantas Airways's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 4.40%.


Qantas Airways  (ASX:QAN) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Qantas Airways Effective Interest Rate on Debt % Related Terms


Qantas Airways Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Qantas Airways's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Qantas Airways Effective Interest Rate on Debt % Chart

Qantas Airways Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.83 4.11 4.16 3.62 3.60

Qantas Airways Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.11 2.42 5.01 2.34 4.40

ASX:QAN vs DAL, UAL, LUV: Effective Interest Rate on Debt % Comparison

For the Airlines subindustry, Qantas Airways's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Qantas Airways Effective Interest Rate on Debt % vs Transportation Industry

For the Transportation industry and Industrials sector, Qantas Airways's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Qantas Airways's Effective Interest Rate on Debt % falls into.


ASX:QAN
80GF Score
Qantas Airways Ltd ASX:QAN
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Qantas Airways Effective Interest Rate on Debt % Calculation

Qantas Airways's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Jun. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Jun. 2024 )+Total Debt  (A: Jun. 2025 ))/ count )
=-1  *  -262/( (6591+7956)/ 2 )
=-1  *  -262/7273.5
=3.60 %

where

Qantas Airways's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Jun. 2025 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -356/( (7956+8241)/ 2 )
=-1  *  -356/8098.5
=4.40 %

where

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.40% mean?
Qantas Airways (ASX:QAN) has a Effective Interest Rate on Debt % of 4.40% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Qantas Airways and its competitors.
Is Qantas Airways' Effective Interest Rate on Debt % too high?
Qantas Airways' current Effective Interest Rate on Debt % is 4.40%. Overall, Qantas Airways has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Qantas Airways' Effective Interest Rate on Debt % compare to DAL and UAL?
Qantas Airways' Effective Interest Rate on Debt % of 4.40% can be compared against companies in the Transportation industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Transportation company?
A good Effective Interest Rate on Debt % depends on the Transportation industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Qantas Airways and its competitors. Qantas Airways's current Effective Interest Rate on Debt % is 4.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qantas Airways stock overvalued right now?
Based on GuruFocus' analysis, Qantas Airways (ASX:QAN) is currently considered Fairly Valued. The stock's GF Value™ is A$11.13, compared to a current price of A$10.69 — trading 4% below its estimated fair value. The current Effective Interest Rate on Debt % is 4.40%. Qantas Airways' overall GF Score™ is 80/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Qantas Airways (ASX:QAN), the current Effective Interest Rate on Debt % is 4.40% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Qantas Airways (ASX:QAN) Overvalued in 2026?

Based on GuruFocus' analysis, Qantas Airways stock appears to be undervalued. The current stock price of A$10.69 is trading 4% below its estimated GF Value™ of A$11.13. GuruFocus considers Qantas Airways to be Fairly Valued.

Key valuation signals for ASX:QAN:

  • Effective Interest Rate on Debt %: 4.40%
  • GF Value™: A$11.13 vs. price of A$10.69 (4% below fair value)
  • GF Score™: 80/100 with 4 warning signs

No single metric tells the full story. See the ASX:QAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Qantas Airways Business Description

Address 10 Bourke Road, Mascot, Sydney, NSW, AUS, 2020
Qantas Airways is Australia's largest domestic airline with typically a two thirds market share, effectively competing in a duopoly with Virgin. The company operates a multibrand strategy, with low-cost carrier Jetstar complementing the full-service Qantas brand. Its frequent-flyer loyalty program continues to expand with new partnerships, which are integral to retaining customer loyalty for its core airline business.
80GF Score

Get the complete analysis for ASX:QAN

Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$10.69
Price
A$11.13
GF Value