Qantas has unveiled a record underlying pre-tax profit of A$1.6 billion ($1.75b), up 14 per cent on the year before.

Australia's national carrier also announced bonuses of A$67 million for 27,000 non-executive staff.

Its statutory pre-tax profit for the year to June 30 came in at A$1.4b, up 18 per cent on the prior 12 months.

That profit is 5 per cent higher than the last record earnings Qantas posted in 2016.

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Net profit after tax rose 15 per cent to A$980m.

The airline's revenue came in at A$17.06b (up 6.2 per cent).

Qantas chief executive Alan Joyce said the record profit "reflected a strong market as well as the benefits of ongoing work to improve the business".

"These numbers show a company that's delivering across the board.

"Our investment in free Wi-Fi and cabin improvements are delivering a better experience for customers as well as higher earnings for Qantas and Jetstar. The overall value for the travelling public remains extremely strong, with domestic sale fares almost 40 per cent lower in real terms than they were 15 years ago," he said in a statement to the Australian stock exchange.

"We're seeing healthy demand across key sectors matched with improving levels of capacity discipline, which is a positive sign for the year ahead.

"This record result comes despite higher oil prices.

"We're facing another increase to our fuel bill for FY19 and we're confident that we will substantially recover this through a range of capacity, revenue and cost efficiency measures, in addition to our hedging programme.

"Ultimately our success relies on the great service and dedication to safety from our people, which is supported by continuing to invest and innovate."

In June, the airline announced a deal with Air New Zealand where the airlines will code- share on domestic routes and look at other ways of co-operating such as developing alternative fuels.

The airline also bolstered its transtasman service with more flights using bigger planes as its commercial partner, Emirates, pulled off flying the Tasman from Auckland.

During the past year, the airline took delivery of the first Dreamliners in its fleet and launched its Perth to London service, the first regular flight between Australia and Britain.

Riding the Pacific in a brand new Dreamliner:</strong>

The marathon flight has been about 78 per cent full during its first few months, a figure the airline says meets its expectations.