Qantas continues financial turnaround with big profits expected in 2016

Australia's national airline Qantas has continued its turnaround in fortunes, with CEO Alan Joyce announcing that it expects its 2016 half-year profit to be almost three times that of 2015.

The market update, announced on Tuesday that Qantas is expecting a windfall of 637 to 675 million U.S dollars, compared to this year's pre-tax first half profit of 265 million U.S dollars.

Joyce said a combination of falling oil prices and cost- cutting methods have translated into one of the carrier's biggest ever turnarounds.

"We've seen improved revenue in our domestic and international operations (and) reduced costs," Joyce said in a statement to the Australian Stock Exchange (ASX) on Tuesday.

The news coincides with the announcement that the airline and leading Australian supermarket brand Woolworths have agreed to further their frequent flyer partnership for a further three years.

The deal will allow Qantas Frequent Flyers to gain points while shopping at Woolworths stores.

Adding to the good news, in August, Qantas confirmed an order for eight new, fuel efficient Boeing 787 jets to replace the fuel-guzzling 747 jumbos in its fleet.

The deal with Boeing will only aid Qantas' bottom line, with the jets expected to save the airline millions in fuel costs over a number of years.

Earlier this year, Qantas announced it had reversed a billion dollar loss during 2013/14 to post a 700 million U.S dollar pre-tax profit in 2014/15, its first major profit since 2011/12. Endit