Tough competition on the international market has taken its toll on Qantas’ first half profits.
The airline reported a 7.5% fall in underlying pre-tax profit to A$852 million (£527 million) for the first six months until December but ahead of the A$800-A$850 million guidance it gave in October.
Revenue dropped 3.3% to A$8.18 billion.
Qantas CEO Alan Joyce said: "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."
Qantas has also revealed its next generation Premium Economy seat, which will debut on the airline’s fleet of Boeing 787-9 Dreamliners from October.
Key features include a separate cabin of 28 seats, configured in a two-three-two, and a seat that is almost 10% wider than Qantas’ existing Premium Economy and with a larger recline.
Seats also have ergonomically designed headrests and high-definition Panasonic inflight entertainment seatback screens that are 25% larger.
"The Qantas Dreamliner will by flying some of the longest routes in the world, including non-stop from Perth to London, so we’ve focused on making each cabin the most comfortable in its class," said Joyce.
"Our Business Suite has been dubbed ‘mini First Class’ by some of our Frequent Flyers and our Economy seat for the Dreamliner has features that some reserve for Premium Economy.
"This new Premium Economy seat has serious wow factor. You have to experience how well it supports you when you recline to realise it’s completely different from anything else in its class."
