Qantas profits plunge 72pc

Qantas Airways has today revealed a 72 per cent dive in net profit for the first half of the 2009-10 business year due to a drop in demand and scrapped its dividend payments.

The national carrier's net profit declined to AU$58 million dollars in the six months ended December 31 from AU$210 million in the year-earlier period.

The airline reported a net profit before tax of AU$90 million and said it remained profitable, unlike many airlines.

"According to IATA, the world's airlines will record net losses of $5.6 billion in 2010," CEO Alan Joyce said in a statement. "While the operating environment has been unprecedented and challenging, this result reflects the strength and diversity of our operations."

Joyce said the drop from the previous year was due to weaker demand and lower fuel surcharges but that the airline expects a full year underlying profit of AU$300 million to AU$400 million.

Sales and other income were AU$6.9 billion, down 14 per cent from the corresponding period a year earlier.

Investors reacted negatively to the result, with Qantas shares falling nearly 7 per cent to AU$2.77 in early trading on the Australian stock exchange.

Qantas said it would have no interim dividend and said future dividends in future would depend on earnings performance.

-AP