Qantas has recorded a 28 per cent fall in its post-tax profit to $1.25 billion in the 2024 financial year, due to fares moderating, increased spending on customer initiatives and reduced freight revenue.

The airline's preferred profit measure of underlying profit before tax also fell by 16 per cent to $2 billion in the same period.

It follows the airline's bumper annual profit of $1.7 billion last financial year— its first since before the COVID-19 pandemic grounded the aviation industry.

Qantas is focused on winning back customers, having invested in passenger promotions and in-flight services, after a turbulent year of headlines over its COVID-19 travel credits scheme and legal battles.

"I am not standing here today saying it is. We are going to continue to invest in customer experience and we are going to continue to support our people to deliver the best that they can."

In Qantas' statement to the ASX, Ms Hudson said "restoring trust and pride in Qantas as the national carrier is our priority".

"And while there's more work to do, we'll get there by delivering for our customers and people consistently into the future," she said.

In February, the airline said it expected it would be managing higher industry costs in the second half of the financial year as capacity returns to pre-COVID levels.

Revenue for the airline jumped to $21.9 billion in the last financial year, while net debt is at $4.1 billion.

Jetstar, its lower cost airline, saw a 23 per cent increase to its earnings of $497 million, up from $404 million compared to last year's results.

Ms Hudson said Qantas had benefited over the financial year from "increased corporate and resources travel and ongoing high demand for international premium seats".

However, the airline's domestic and international offerings saw a drop in earnings, with domestic falling 16 per cent to $1.06 billion (underlying EBIT), and its international flight business, including freight, declining by 39 per cent to $566 million.

The airline did not declare a dividend, but announced an up to $400 million share buyback.

Qantas has 'dodged a bullet'

This was the first set of full year results delivered by Ms Hudson in the role of chief executive after she replaced Alan Joyce in September.

The former Qantas boss fast-tracked his planned exit from the company after a tumultuous period for the airline drew increased scrutiny from passengers and consumer advocates.

The company's reputation took a hit as it made headlines over the sacking of its staff during the pandemic, the generous renumeration package of its former chief executive and various legal issues.

In its financial year results, Qantas reported $198 million in legal provisions over the year, including a $128 million settlement with the Australian Consumer and Competition Competition (ACCC) over its court case.

The ACCC lawsuit claimed the airline had sold seats on flights that had already been cancelled. Under the settlement, Qantas agreed to institute a remediation program for affected passengers.

Qantas also recorded a $70 million provision for "ground handling outsourcing" after the High Court ruled it had illegally sacked some staff during the pandemic.

The full compensation bill has not yet been finalised.

The Flying Kangaroo is at the centre of a separate class action by Echo Law for not refunding tickets for cancelled flights during the COVID-19 pandemic, claiming it was against Australian consumer law. Qantas has rejected the allegations.

However, shareholder advocate Stephen Mayne said Thursday's profit showed that Qantas is "over the worst of it", and it is "rebuilding trust with customers and other stakeholders".

"I think Qantas effectively has dodged a bullet here," he told the ABC.

"…This was the first half year result where Vanessa Hudson was wholly responsible for it, it's come out pretty well overall."

He said he expected the airline's domestic market will be the most important driver for Qantas going forward.

"Two of their competitors, Bonza and Rex, have just fallen over, so they're more dominant than ever in the Australian market," he said.

"And that will be better than international, where they're seeing more competition coming in."

As part of its long-term performance, Qantas has been investing in new Airbus A220 jet aircraft to replace its fleet of Boeing 717s.

"So they've invested $3.1 billion in the last 12 months on capital and mainly fleet, and they're going to have to keep on investing multiple billions of dollars a year to get their fleet up to scratch."

Ms Hudson said the financial year results will allow the company to continue to invest in fleet renewal program, which "come at a time when Australians are continuing to prioritise travel over other spending categories".

Airline expects pay agreement with flight attendants will cost $60m

Qantas has also reached an in-principle agreement with the Flight Attendants' Association of Australia (FAAA) to provide staff with more pay and job security.

In December 2023, the Albanese government passed their "Same Job Same Pay" legislation, which the airline said affected some long-standing workforce arrangements used by Qantas and other businesses.

Qantas and the FAAA have been in discussions over the changes, with the airline confirming it will support the union's three Fair Work Commission (FWC) applications for its short-haul cabin crew and a separate in-principle agreement for its long-haul cabin crew workforce.

Qantas said it will result in 800 Qantas short-haul cabin crew receiving pay increases soon, as well as about 2,500 international crew.

FAAA federal secretary Teri O'Toole said it would amount to an average 30 per cent pay increase for workers.

Qantas said it expects the gross impact of the proposed changes in the 2025 financial year to be about $60 million, and will look to offset the wage increases through revenue and cost savings.

Ms O'Toole said the new agreement is a positive start to a new relationship with the airline.

"We've been able to get Qantas to the table. We've been able to negotiate a fair and reasonable outcome that actually allows for Qantas to grow," she said at a press conference on Thursday.