Qantas has reported full-year underlying profit after tax of $2.47 billion and announced plans to replace its aging fleet of Airbus A330s with two dozen new aircraft to meet “incredibly robust” demand.

Revenue grew to $19.8 billion, from $9.1 billion last year. It had revenue of $17.97 billion in 2018/19, before the pandemic, Qantas said on Thursday.

“These results show a substantial turnaround in both our finances and service over the past year,” Chief Executive Alan Joyce said.

“Travel demand is incredibly robust and we’ve taken delivery of more aircraft and opened up new routes to help meet it.”

The flagship carrier’s net debt incurred to stay afloat during COVID-19 was reduced 27 per cent to $2.89 billion. It has suffered $7 billion in statutory losses over three years.

Qantas is not paying a dividend but has committed to buying back up to $500 million in shares with its balance

It also announced it will buy another 24 wide-body aircraft – a dozen Boeing 787s and a dozen Airbus A350s.

“This is another multi-billion investment in the national carrier,” Mr Joyce said.

Deliveries will start in 2026/27 and continue into the next decade, replacing the bulk of Qantas’ aging fleet of 28 A330s that it uses on domestic east-west flights as well as internationally.

Mr Joyce also said the group was launching its 17th major sale in the past 12 months, with 1 million seats available across Qantas and Jetstar.

Qantas’ domestic capacity is above pre-COVID-19 levels and international capacity is at about 80 per cent.

Mr Joyce said that economy fares have dropped 12 per cent since peaking last December.

They should keep dropping as more international capacity comes online, he said.

By the middle of next year Qantas’ international capacity should be at pre-COVID levels, which Mr Joyce said was the fastest it could get wide-body aircraft back in the air.

– AAP