Qantas chief executive Alan Joyce said the airline recorded underlying profits before tax of $852 million for the six months ending December 31, 2016, while statutory profit before tax was $715 million.

While the underlying profits represented a decrease year on year, the result was still up on the guidance provided in October last year.

Joyce said: “Our transformation program has built a strong, sustainable business that generates returns throughout the economic cycle.

“Qantas and Jetstar’s domestic operations produced an outstanding result and Qantas Loyalty continued to thrive. It’s a combination that keeps delivering and sets us apart from our competitors.

“The international market is tough because of capacity growth and lower fares, and Qantas International is not immune from those pressures.

“But the work we’ve done on removing costs and making the business more efficient means Qantas International is outperforming its peers in the region.

“Our focus is to stay disciplined on capacity, keep downward pressure on costs, and introduce game-changing improvements like the Dreamliner and high-speed Wi-Fi.

“This result is a credit to the hard work and dedication of our people, who have helped deliver high levels of customer satisfaction right across Qantas, Jetstar and Loyalty.”