Qantas has posted a net profit of $111 million in the six months to December 31, up from $42 million in the year-ago period. Although this triples profits, the result are still far below analyst expectations of $138 million. The airline's underlying profit before tax, which excludes one-off financial items, rose 10% to $223 million. Qantas in November forecast an underlying profit before tax in the range of $180 million to $230 million.
"The operating environment remains complex and volatile, but we are now beginning to realise the benefits of the tough decisions that we have made over the past 18 months," chief executive Alan Joyce said in a statement on Thursday.
Profits were bolstered by the A$125m compensation Qantas received from Boeing for delays and the eventual cancellations of its 787 order.
Qantas has been impacted by slowing demand and the loss of passengers to rival carriers although CEO Alan Joyce states that the airline is now starting to realize the benefits of the restructuring efforts initiated 18 months ago.
"Qantas International is well advanced in its turnaround plan," he said. "We are confident that with our balanced portfolio of domestic airlines we will remain the leader in every segment of the market.”
Qantas profits aided by Boeing comp
