Qantas doubles full-year profits

Photo / Paul Estcourt

Qantas Airways has more than doubled full year net profit and says the general operating environment is challenging and extremely volatile.

The Flying Kangaroo said net profit for the 12 months to June 30 was $A250 million, compared with $112 million in the prior corresponding period.

The result was below the market consensus of $322 million, according to a median of four analysts estimates gathered by AAP.

Chief executive Alan Joyce said the result was achieved despite a number of challenges facing the company and industry.

"This result reflects the strength of the Qantas Group's portfolio and is our best performance since the global financial crisis," he said in a statement on Wednesday.

"We achieved the result while overcoming significant external and operational factors, including a series of natural disasters, a 28 per cent increase in average fuel prices and an underperforming international business."

Qantas said underlying profit before tax - the airline's preferred measure of financial performance - was $552 million, above the $377 achieved in 2009/10.

Analysts forecasts had centred on underlying profit before tax coming in at $514 million, while company guidance was for a figure between $500 million to $550 million.

The company forecast that yield in the first half of financial 2012 was expected to be higher than the first half 2010/11.

Qantas also expects to increase capacity in the first half by eight per cent.

As at August 22, underlying fuel costs for the first half are estimated to increase by about $500 million to $2.2 billion.

Qantas said it was not possible to provide profit guidance because of the volatility, uncertain economic conditions and the major changes taking place in the company.

-AAP