Net profit for the six months to December 31 was $688 million, more than three times the $203 million for the same time last year, and more than Qantas made in the whole of the last full financial year.

The result was boosted by $448 million in savings through the airline hedging on lower fuel prices and $261 million in cost and revenue benefits it attributed to its ongoing restructuring.

Underlying profit before tax was $921 million, in the upper end of the airline’s guidance of $875 million to $925 million.

Qantas opted against paying an interim dividend and instead will hand over cash to shareholders in the form of a buyback to start in March.

“The strength of our performance and balance sheet means we can continue to reward our shareholders for their confidence in our business,” chairman Alan Joyce said.

The airline already handed back the vast majority of the $557 million full year net profit announced in August to shareholders in the form of a 23 cents per share cash distribution.

QANTAS’ RECORD FIRST HALF

Net profit up 239 per cent to $688mn

Revenue up 5.0pct to $8.463bn

No interim dividend

AAP