Qantas shares have surged more than seven per cent in early trading after posting a strong first-half result.
The airline's underlying profit after tax surged 11 per cent to $1.39 billion in the six months to December, while its statutory net profit after tax was up six per cent on last year, to $923 million.
Qantas shares were fetching $9.52 in early trading, up 7.1 per cent since Wednesday's close.
Shareholders can look forward to their first dividend in nearly six years, after the airline announced base and special dividends totalling 26.4 cents per share.
Earnings per share were up 21 per cent to 63 cents.
Qantas chief executive Vanessa Hudson thanked company staff for the performance.
"You are the backbone behind delivering to our customers, so you can be very proud of our results," Ms Hudson said from the results briefing.
The airline's boss admitted there was still work to do to rebuild public trust after years of controversy over issues including selling tickets to cancelled "ghost" flights, illegal COVID-era sackings and executive bonuses.
“We’re seeing progress from the investments we are making for our customers and people but we know there’s more work to do to consistently deliver in the moments that matter," Ms Hudson said.
"This is a key part of rebuilding trust and continues to be our focus."
In October, the airline was fined $100 million for selling tickets to cancelled flights over several years, following Federal Court action taken by the competition watchdog.
In December, Qantas announced a $120 million compensation fund after reaching a deal with the Transport Workers' Union after it was found to have illegally sacked 1820 employees in 2020.
"I think it's really important that we move forward, that we reconcile with the impacted employees, which I have and will do, and also enabling the compensation to be paid as quickly as possible," Ms Hudson said.
The union hit out at the result and said Qantas's contract model left workers with poor rostering, low guaranteed hours and poor job security.
"Qantas is back to making billions, but it has a long way to go to convince Australians that their money’s going to the airline they used to know and love," the union's national secretary Michael Kaine said.
A stellar Jetstar performance helped drive Qantas's first-half result as living cost pressures helped the discount carrier to record-high passenger levels.
Jetstar's domestic earnings increased 54 per cent compared with the previous year, and total earnings before interest and tax reached $439 million.
Qantas Loyalty posted earnings before interest and taxes of $255 million for the half, down from $270 million last year, despite frequent flyer member growth of eight per cent.
Net debt remained at $4.1 billion as at 31 December 2024, and is expected to be at or below the middle of the $4.7 billion - $5.8 billion target range for FY25.
Qantas returned $431 million to shareholders in on-market buybacks, which it used to help fund the purchase of 11 new aircraft in the first half, with plans to buy another seven in the second.
No further buybacks have been announced for the second half.
