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Sydney - Embattled Australian carrier Qantas said on Monday it had turned the corner after a major shake-up to stem losses, forecasting a swing back into the black in upbeat half-year profit guidance.
Record fuel costs and fierce competition saw the carrier post an underlying loss before tax - its preferred measure of financial performance - of Aus$252m in the six months to December 31, 2013.
But in a market update, Qantas said it expected an underlying profit of between Aus$300m and Aus$350m in the same six months this year.
The company gave no guidance on a net profit basis.
Chief executive Alan Joyce said the upbeat numbers were driven by tumbling oil prices slashing fuel bills and an aggressive cost-cutting campaign, with the firm embarking on a Aus$2bn transformation programme 12 months ago.
"Today we confirm that Qantas is set to report its best first half result since 2010," Joyce said.
"This demonstrates that the strategy we have outlined to transform our business is working.
"This is an improvement of over Aus$550m compared with the first half last year, with Qantas Transformation being the primary driver of the turnaround."
The company, which is due to report its interim result on February 26, said all areas of the business, including its ailing international division, were expected to be profitable in the first half of the fiscal year.
It comes on the heels of a cost-cutting drive that has seen thousands of jobs axed, aircraft deliveries deferred and growth at Asian offshoot Jetstar frozen.
The carrier has also benefited from lower jet fuel prices, which are expected to add Aus$30m to the bottom line during the six-month period.
