Dubai: Qantas has posted its best half-year result in four years with its international unit making money for the first time in the history of the Emirates partnership.

Australia’s largest airline, known as the flying kangaroo, made a statutory profit after tax of A$206 million (Dh598 million), of which A$203 million is attributable to Qantas, for the six months ending December 31, 2014. A huge improvement on the A$235 million statutory loss it reported a year ago.

The Australian financial year starts July 1 and ends June 30.

All divisions of the business — including Qantas International — made a profit over the period.

Qantas International made an underlying profit before tax of A$59 million compared to a A$262 million loss a year earlier.

It is the first time the international unit has made money since the global financial crisis and subsequently the first time in the brief history of the Qantas-Emirates partnership that launched in April 2013.

Qantas Chief, Alan Joyce, said at a web streamed press conference the Emirates partnership “continues to deliver.”

“We’ve seen exceptional customer satisfaction with our Dubai hub and with increased range of destinations we’re now serving through Europe which in turn has given us a significant competitive advantage,” he said.

The international unit’s return to profitability was put down to cost cuts, reduced depreciation of the fleet and an increase in utilisation of its fleet.

Qantas changed the timing of its Melbourne-London via Dubai flight last year so that the Airbus A380 used on the route could also be used on the Sydney-Dallas route.

“The Emirates partnership has significantly strengthened Qantas’ position in the highly competitive Australia — Europe market,” said UK-based John Strickland, Director of JLS Consulting, by email.

“The fact that it has been able to restructure its other long haul operations and push up aircraft utilisation is a function of its ability to reduce aircraft committed to European routes as a result of the partnership and redeploy them more profitably elsewhere,” he added.

Turnaround

Qantas’ half-year results represent a massive turnaround from the airline’s last full-year results when it declared a record A$2.8 billion loss. Qantas has since embarked on a huge cost cutting process where thousands of jobs have gone.

Over the half, the airline found A$374 million in costs cuts, A$162 million in increased revenue per seat kilometre and benefited from A$208 million from reduced depreciation, A$59 million from the Australian government’s removal of the carbon tax, a greenhouse gas emissions tax, and A$33 million from cheaper fuel prices.

“It’s certainly a step in the right direction,” said Tony Webber, former Qantas chief economist, by phone.

“The decision making has been better,” he added.

The airline’s domestic unit — where it makes the bulk of its earnings — posted an underlying earnings before tnterest and tax (EBIT) of A$227 million compared to A$57 million a year ago.

Subsidiary Jetstar Group, which has domestic and international operations, made an EBIT of A$81 million compared to a A$16 million loss a year earlier.

The frequently flyer programme, Qantas Loyalty, made an EBIT of A$160 million, a A$16 million improvement, while Qantas Freight made an EBIT of A$54 million, up from A$11 million.

Qantas said it is now aiming for A$675 million in cost cuts for the full year, more than its previous expectation of A$600 million.

Qantas shares closed up 1.423 per cent to A$2.85 on the Australian Securities Exchange on Thursday.