Qantas AirwaysFRA:QAN -0.11%83 Gross Margin % is 55.50% as of Dec. 2025, which is 1% below its 10-year median of 55.82. GuruFocus rates FRA:QAN with a GF Score™ of 83/100 and a GF Value™ of €6.73 (Fairly Valued). The stock has 4 warning signs investors should review. Among 979 Transportation companies, Qantas Airways ranks better than 89.99% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Qantas Airways had a gross margin of 55.50% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Qantas Airways Gross Margin % Related Terms
Qantas Airways Gross Margin % Historical Data
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The historical data trend for Qantas Airways's Gross Margin % 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.
FRA:QAN vs DAL, UAL, LUV: Gross Margin % Comparison
For the Airlines subindustry, Qantas Airways's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Qantas Airways's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Qantas Airways's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Qantas Airways (FRA:QAN) has a Gross Margin % of 55.50% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Qantas Airways and its competitors. This is near median its historical median of 55.82. Over the past decade, Qantas Airways' Gross Margin % has ranged from 52.00 to 58.94. According to the industry distribution chart, Qantas Airways ranks #98 out of 979 companies in the Transportation industry, placing it in the top 10%.
Is Qantas Airways' Gross Margin % too high?
Qantas Airways' current Gross Margin % of 55.50% is near median its 10-year median of 55.82. Over the past 10 years, this metric has ranged from a low of 52.00 to a high of 58.94. The Transportation industry median Gross Margin % is 20.38. Qantas Airways' value of 55.50% is 172.3% above this industry median. Based on the distribution chart, Qantas Airways ranks #98 out of 979 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Qantas Airways has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Qantas Airways' Gross Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Qantas Airways ranks #98 out of 979 companies for Gross Margin %. This places Qantas Airways in the top 10% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 20.38. Qantas Airways' value of 55.50% is 172.3% above this benchmark. Historically, Qantas Airways' own Gross Margin % has ranged from 52.00 to 58.94 over the past decade. While the company's 10-year median is 55.82 vs. the industry median of 20.38, Qantas Airways has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Transportation company?
The median Gross Margin % among Transportation companies is 20.38, based on 979 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Qantas Airways's current Gross Margin % of 55.50% is 172.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Qantas Airways and its competitors. For the Transportation industry, the median Gross Margin % is 20.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qantas Airways's current Gross Margin % is 55.50%, which is near median its own 10-year median of 55.82. 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 (FRA:QAN) is currently considered Fairly Valued. The stock's GF Value™ is €6.73, compared to a current price of €6.44 — trading 4.4% below its estimated fair value. The current Gross Margin % is 55.50%, which is near median its 10-year median of 55.82 and 172.3% above the Transportation industry median of 20.38. Qantas Airways' overall GF Score™ is 83/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Qantas Airways (FRA:QAN), the current Gross Margin % is 55.50% 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 (FRA:QAN) Overvalued in 2026?
Based on GuruFocus' analysis, Qantas Airways stock appears to be undervalued.
The current stock price of €6.44 is trading 4.4% below its estimated GF Value™ of €6.73.
GuruFocus considers Qantas Airways to be Fairly Valued.
Key valuation signals for FRA:QAN:
Gross Margin %: 55.50% (near median its 10-year median of 55.82)
GF Value™: €6.73 vs. price of €6.44 (4.4% below fair value)
Industry Position: 172.3% above the Transportation median (#98 of 979)
No single metric tells the full story. See the FRA:QAN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
83GF Score
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