The airline says underlying profit before tax for the year ended June 30 rose to $41 million, an improvement on the previous year’s $49 million loss.

Australia’s second biggest carrier had flagged the expected numbers last month, after posting a net loss of $228 million for the final three months of the 2015/16 fiscal year.

“While there are costs associated with implementing these activities and initiatives, these are outweighed by the significant, ongoing future savings that will be delivered,” chief executive John Borghetti said.

-AAP