Australian carrier Qantas soars to record profits

Australian carrier Qantas Wednesday posted record annual profits and announced its first payout to shareholders in seven years, staging a turnaround after axing jobs and selling aircraft in an aggressive restructuring.

The results were also boosted by the sharp fall in global oil prices and a less competitive domestic market that has given the firm a stable base of earnings.

Other international airlines such as Cathay Pacific, ANA and Japan Airlines have seen profits plunge amid intense competition from lower-cost rivals and as terrorism fears eat into demand.

Qantas reported a net annual profit of Aus$1.42 billion (US$1.08 billion) in the year to June 30, an 80 percent increase from the previous corresponding period.

Underlying profit before tax -- Qantas' preferred measure -- jumped by 57 percent to also hit a record of Aus$1.53 billion.

The company resumed paying dividends of seven cents per share, the first payout since 2009 and announced a share buy-back of up to Aus$366 million. Qantas also said it would give a Aus$3,000 one-off bonus to some 25,000 staff who had signed up to a pay freeze.

"These are fantastic results that we've had in the last year, as I said, record results for the group," chief executive Alan Joyce told reporters.

"We do see the strong performance of the company continuing. This business has taken a lot of cost out and improved revenue dramatically. The transformation programme has changed the business completely, delivering over Aus$1.66 billion in performance improvements. Without that, we wouldn't be where we are today."

Qantas shares closed 1.47 percent higher at Aus$3.45 in Sydney trading.

Global ratings agency Standard & Poor's said the result had no immediate impact on Qantas' rating, which is currently at investment grade 'BBB-'.