Qantas AirwaysFRA:QAN +0.75%83 Interest Coverage is 7.08 as of Dec. 2025, which is 40% above its 10-year median of 5.05. GuruFocus rates FRA:QAN with a GF Score™ of 83/100 and a GF Value™ of €6.71 (Fairly Valued). The stock has 6 warning signs investors should review. Among 838 Transportation companies, Qantas Airways ranks better than 58.95% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Qantas Airways's
Operating Income
for the
six
months ended in Dec. 2025 was €715 Mil. Qantas Airways's Interest Expense for the
six
months ended in Dec. 2025 was €-101 Mil.
Qantas Airways's interest coverage for the quarter that ended in Dec. 2025 was 7.08.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Qantas Airways's Interest Coverage or its related term are showing as below:
FRA:QAN'
s Interest Coverage Range Over the Past 10 Years
Min: 3.74 Med: 5.05 Max: 8.41
Current: 7.76
FRA:QAN's Interest Coverage is ranked better than 58.95% of 838
companies
in the Transportation industry
Industry Median: 5.67
vs FRA:QAN: 7.76
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Qantas Airways Interest Coverage Related Terms
Qantas Airways Interest Coverage Historical Data
* Premium members only.
The historical data trend for Qantas Airways's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:QAN vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Qantas Airways's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Qantas Airways's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Qantas Airways's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:QAN) has a Interest Coverage of 7.08 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Qantas Airways and its competitors. This is 40% above median its historical median of 5.05. Over the past decade, Qantas Airways' Interest Coverage has ranged from 3.74 to 8.41. According to the industry distribution chart, Qantas Airways ranks #344 out of 838 companies in the Transportation industry, placing it in the top 41.1%.
Is Qantas Airways' Interest Coverage too high?
Qantas Airways' current Interest Coverage of 7.08 is 40% above median its 10-year median of 5.05. Over the past 10 years, this metric has ranged from a low of 3.74 to a high of 8.41. The Transportation industry median Interest Coverage is 5.67. Qantas Airways' value of 7.08 is 24.9% above this industry median. Based on the distribution chart, Qantas Airways ranks #344 out of 838 companies in the Transportation industry, which is above the industry midpoint. 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' Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Qantas Airways ranks #344 out of 838 companies for Interest Coverage. This puts Qantas Airways in the upper half of its industry. The industry median Interest Coverage is 5.67. Qantas Airways' value of 7.08 is 24.9% above this benchmark. Historically, Qantas Airways' own Interest Coverage has ranged from 3.74 to 8.41 over the past decade. While the company's 10-year median is 5.05 vs. the industry median of 5.67, 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 Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.67, based on 838 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Qantas Airways's current Interest Coverage of 7.08 is 24.9% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Qantas Airways and its competitors. For the Transportation industry, the median Interest Coverage is 5.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qantas Airways's current Interest Coverage is 7.08, which is 40% above median its own 10-year median of 5.05. 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 €6.71, compared to a current price of €6.44 — trading 4% below its estimated fair value. The current Interest Coverage is 7.08, which is 40% above median its 10-year median of 5.05 and 24.9% above the Transportation industry median of 5.67. Qantas Airways' overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Qantas Airways (FRA:QAN), the current Interest Coverage is 7.08 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% below its estimated GF Value™ of €6.71.
GuruFocus considers Qantas Airways to be Fairly Valued.
Key valuation signals for FRA:QAN:
Interest Coverage: 7.08 (40% above median its 10-year median of 5.05)
GF Value™: €6.71 vs. price of €6.44 (4% below fair value)
Industry Position: 24.9% above the Transportation median (#344 of 838)
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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