Australia's biggest airline will return up to $450 million to investors after reporting a lift in interim earnings as it eyes ways to offset higher airport fees.
Qantas's first-half underlying pre-tax profit ended at $1.5 billion, up about five per cent on the prior corresponding period.
Its bottom-line result was relatively flat at $925 million for the six months ended December on revenue of $12.9 billion, which grew just over six per cent.
The flow of money will add to an increased interim dividend for shareholders totalling $300 million, or 19.8 cents a share - a 20 per cent increase.
Qantas group chief executive Vanessa Hudson described the carrier's first-half performance as strong despite cost increases.
"We have seen a sharp increase in some costs like airport charges and government fees, which have increased at double the rate of inflation over the past 12 months," she said.
"We are offsetting these where possible, through transformation, and we're working across the industry to address what can be done to ensure this doesn't impact the ongoing affordability of air travel in this country."
The Qantas and Jetstar domestic businesses continued to record growth in travel demand and delivered underlying earnings before interest and tax of $1.1 billion.
International and freight earnings fell six per cent to $463 million.
Qantas is forecasting continued strong travel demand across its business.
The domestic operations are tipped to generate a three per cent rise in revenue in the second half, while the international arm is heading for a one to three per cent increase.
