Qantas says it has returned to profitability after five consecutive half-year losses due to COVID-19, and is promising $40 million in wage increases.

Chief executive Alan Joyce says the carrier expected a “very strong” profit before tax of between $1.2 billion and $1.3b for the first half of 2022/23.

“It’s a remarkable turnaround,” he told reporters on Thursday.

“The main drivers of this performance are strong travel demand, both domestically and internationally.”

Revenue for business travel was more than 100 per cent of pre-COVID levels and leisure travel was up 130 per cent from before the pandemic, he said.

But costs are also up, with supply chains still snarled and the airline having to have more crew on standby along with 20 spare aircraft.

Mr Joyce said Qantas would boost worker pay by 10 per cent.

“We know our people have done it tough, including long periods of stand-down and a two-year wage freeze,” he said.

– AAP