Qantas profit down 16% to $2.1bn as surging demand for cheap fares helps Jetstar

Qantas’s profits fell from last year’s record highs but the financials are still strong on a historical basis, its financial results have revealed. Photograph: Daniel Munoz/Reuters

Qantas Airways has posted a $2.1bn annual underlying profit – down 16% from last year’s record result – amid a surge in demand for budget Jetstar fares and mounting public anger at its service and ticket policies.

Australia’s biggest airline said bookings and travel demand remained stable across its flying brands, although moderating air fares had eroded profits, especially on international flights.