Qantas is expecting to report an underlying pre-tax profit of A$300 million to A$350 for the first six months of the 2015 financial year.
The Australian carrier said the turnaround in profit is being driven by its A$2 billion cost-cutting Qantas Transformation programme.
Today we confirm that Qantas is set to report its best first half result since 2010,” said Qantas CEO Alan Joyce.
“This demonstrates that the strategy we have outlined to transform our business is working. This is an improvement of over $550 million compared with the first half last year, with Qantas Transformation being the primary driver of the turnaround,” he added.
The airline is one year into a three-and-a-half year turnaround strategy, which includes stripping costs, freezing capacity and slashing 5,000 jobs. It came after Qantas announced record-breaking losses earlier this year.
Joyce said it was too early to discuss whether Qantas would bring forward its purchase and options rights on 50 Boeing 787-9s. The airline needs to make a decision on the first delivery slot by the end of next year.
Qantas said it expects to receive a A$30 million benefit in the first half from lower dollar fuel prices.
Qantas announces its first half results for the financial year 2015 on February 26.