Australia's Qantas has blamed higher fuel costs for a lower net profit - A$498 million - in the 2018/19 first half.

That was 16.3 per cent less than the A$595 million for the prior corresponding period, despite revenue rising 5.8 per cent to A$9.21 billion.

 

Underlying profit before tax fell 18.7 per cent to A$780 million from A$959 million in the same period a year earlier.

 

Qantas international suffered a 60 per cent fall in underlying earnings before interest and tax (EBIT), which came in at A$90 million for the half as fuel costs rose $216 million.

 

Qantas Domestic, however, reported underlying EBIT of A$453 million for the first half, up marginally from A$449 million in the prior corresponding period.

 

Qantas chief executive Alan Joyce said the total fuel bill increased by A$416 million and a weaker Australian dollar and higher commissions also affected the result.

Meanwhile, Qantas' Jetstar budget arm reported a 20 per cent fall in underlying EBIT, which came in at A$253 million for the half.

 

Joyce also said forward bookings remained strong and oil prices had declined somewhat from their late 2018 highs.

 

The company has declared an interim dividend of A0.12 per share, fully franked. It also has announced a share buy-back program worth A$305 million.