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In an announcement that has surprised the industry and punters, QANTAS has announced a before-tax profit of some $377-million.

The move has seen the company’s CEO, Alan Joyce tell media that the company had “performed well during tough economic conditions”.

Mr Joyce also said:

“The overall strength and diversity of our operations, back by our two airline brands and portfolio business strategy, and an ongoing focus on cost and prudent financial management, saw us through the crisis and will continue to drive our business.”

Mr Joyce claims the improvement in profit is due to international leisure, but he also expects an increase in demand for domestic flights by around 9% to occur in the next financial year.

QANTAS’s successful budget airline, Jetstar, is to thank for a bulk of the profits. Jetstar reeled in around $131-million of the total profits, while QANTAS only contributed around half that at $67-million.

Mr Joyce’s announcement also included details about its frequent flyer program reaching seven million members. The added boost in numbers is partly due to the free sign up associated with the Woolworths Everyday Rewards program.

The Woolworths Everyday Rewards program allows the public to receive a complimentary QANTAS frequent flyer membership when they sign up for the rewards card.

Shareholders are not rejoicing though as the company won’t be paying dividends due to the after tax profit falling 5.7% short of being in the black.