Qantas has soared back to profit, jettisoning last year's almost $3 billion in losses and delivering its best interim result in four years.
In the space of 12 months, and just one year into a multi-billion cost-cutting drive that includes plans to ultimately shed 5,000 jobs, the carrier's Irish-born chief Alan Joyce has steered Qantas back into the black.
Australia's biggest carrier on Thursday announced a net profit of $203 million, a turnaround from a $235 million loss at the same time last year, and after recording a full-year net loss of $2.8 billion for 2013/14.
The airline revealed an underlying 2014/15 first half profit of $367 million, beating forecasts of between $300 million and $350 million.
Qantas International was profitable for the first time since the global financial crisis with underlying earnings of $59 million - a turnaround of $321 million over the same period last year.
The airline's domestic arm recorded underlying earnings of $227 million, up $170 million.
Qantas shares rose four cents to a four-year high of $2.85.
Mr Joyce said the transformation program, which aims to cut costs by $2 billion, had already delivered $374 million in benefits.
Qantas has already cut 3,800 jobs, with another 1,200 to be axed by 2017.
"Without the impact of transformation, Qantas would not be profitable today," Mr Joyce said.
"We're not there yet. This is only year one of a three-year transformation program."
Unions seized on the airline's turnaround in fortunes, saying the Qantas workforce and their families had borne the brunt of wage freezes and redundancies.
"Alan Joyce made just over $2 million last year when Qantas posted a $2.8 billion loss," TWU national secretary Tony Sheldon said.
"Our members meanwhile find it difficult to pay their bills because their hours have been cut or they are employed on a casual basis. We are calling a halt to this robbery of the community's economic freedom."
Mr Joyce said it was "heartbreaking" to make anyone redundant but his focus must be to protect the 28,000 jobs that would remain.
"We know that the business has to be able to cope with higher fuel prices if they went back up, has to cope with the Aussie dollar if it does go back up to the higher levels," he said.
The repeal of the carbon tax was also a "positive driver" behind the turnaround, adding $59 million in benefits, while lower fuel prices contributed $33 million.
Bank of America Merrill Lynch said Qantas' outlook could be expected to prompt upgrades to profit forecasts.
"The company expects all divisions to be profitable in FY15. These comments should drive upgrades to FY15 consensus today," analysts said.
Meanwhile, Jetstar reported an underlying profit of $81 million, an improvement of $97 million.
Qantas said the entire group's outlook for the second half of the year had improved, but that no profit guidance could be given "due to the high degree of volatility and uncertainty in global economic conditions".
QANTAS BACK IN THE BLACK
* Net profit of $203m, compared to a $235m loss
* Revenue of $6.96b, up 2.5pct from $6.79b
* No dividend
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