The latest financial figures from Qantas contained some "substantial shocks" but the airline is positioned for a better future, Deputy Prime Minister Warren Truss says.
Qantas on Thursday announced a $2.8 billion loss, having written down the value of its ageing fleet of Boeing 747s and A380s by $2.6 billion.
Mr Truss said the results offered some encouragement.
"The fact they are projecting to move to a situation where they will be in profit in the first half of next year, that is very encouraging," Mr Truss told reporters in Canberra on Thursday.
"I think their determination to reduce costs and retire debt, and that they have the capacity to retire debt, will be encouraging to their investors."
He said the market had reacted favourably to the figures despite "some substantial shocks in what they are announcing".
The airline clearly had to bring to account the change in asset value of its aircraft.
"While the numbers are dramatic, the reality is Qantas is a strong company and seems to be positioning itself for a better future," Mr Truss said.
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