Qantas shareholders will pocket a second windfall in a year after the airline launched a $500 million buyback on the back of a record first half profit.
The total Qantas has handed over since returning to profit in 2015 will soar past $1 billion with the buyback, which was unveiled on Tuesday alongside a $688 million half year net profit.
Shareholders already bagged the vast majority of 2015's $557 million profit with a 23 cents per share cash distribution, and even more money could be winging its way to them in six months' time.
Alan Joyce, who declared his intention to remain chief executive for the foreseeable future, said the board will consider further capital returns when it reports full year results in August.
"The strength of our performance and balance sheet means we can continue to reward our shareholders for their confidence in our business," Mr Joyce said.
Qantas has not paid a dividend in seven years and its share price tumbled from a pre-GFC high of $6.06 in October 2007 to an all-time low of 95.25 cents six years later.
Tuesday's result was boosted by $448 million saved through hedging on lower fuel prices, and IG market analyst Evan Lucas said an overnight rise in oil prices was likely behind a drop in the share price on Tuesday.
Qantas shares 5.01 per cent, or 20 cents, to $3.79, but Mr Lucas downplayed the possible impact of rising fuel costs.
"It's a fantastic result," Mr Lucas said.
The buyback means Qantas will have returned $200,000 for each of the 5,000 job cuts announced as part of the so-called transformation program that helped it bounce back from a writedown-heavy $2.8 billion loss in 2014.
Qantas said the restructuring resulted in $261 million in cost and revenue benefits over the six months to December 31.
"Qantas results, as Alan Joyce pointed out, are down to hard-working employees who have made many sacrifices to get the airline back to profit," Transport Workers' Union national secretary Tony Sheldon said.
The half year profit was more than three times the $203 million for the same time last year, and $131 million more than Qantas made in the whole of FY15.
Jetstar's underlying earnings of $262 million were better than the budget carrier's best ever full year result even after a $23 million hit due to cancellations stemming from the eruption of volcanoes in Indonesia.
Underlying profit before tax was $921 million, at the upper end of the airline's guidance of $875 million to $925 million.
"All the pain and suffering you were served as a shareholder over the last five to seven years, you've been rewarded for that loyalty," Mr Lucas said.
"And if you were strong enough and smart enough to buy in Qantas over the last 24 months, the response is even stronger."
QANTAS' RECORD FIRST HALF
* Net profit up 239pct to $688mn
* Revenue up 5.0pct to $8.463bn
* No interim dividend
