The airline posted underlying pre-tax profit of A$852 million ($653 million) for its first half ending December 31, down from A$921 million a year earlier, but ahead of the A$800-A$850 million guidance it gave in October. Net profit fell to A$515 million.
In an interview on CNBC's "Squawk Box", Qantas CEO Alan Joyce highlighted challenges of the business but said the company recorded its third best first half in its history and was "making more money than nearly all of the major carriers put together". Qantas he said, gave a 22 percent return on investor capital.
"Everybody in the region is having bigger drops, 50 per cent to 80 per cent drops in the profitability," Joyce told reporters earlier.
Even though Qantas saw a 7.5 percent drop in underlying profit and a 25 percent drop in net profits for the first half of the year, the company was coming off a year of record profits the year before that saw the carrier hand out its first dividend since 2009 amid an ongoing restructuring program that has borne fruit for the carrier amid challenging operating conditions in the industry.
"A lot of capacity has been added around the globe. What that is doing is lowering average airfares and passing back the fuel benefits that the airlines are getting back to consumers," he said.