Australia's flag carrier Qantas Airways declared a special dividend for the first time in more than two decades, with the company also reporting a first-half profit on Thursday that rose 11% on the back of strong demand.

Australia’s major airline will pay a dividend for the first time since 2019 after a rise in fiscal first-half profit.

Qantas Airways Ltd. is paying its first dividend since before the pandemic, underscoring the airline’s financial recovery following the crisis and the increasing demand for air travel.

The airline also outlined plans to refurbish dozens of its Boeing 737 aircraft as it grapples with high travel demand but a lack of new planes being delivered.

The results were supported by high demand for domestic and international travel, with Qantas and Jetstar carrying 28 million passengers, nearly 10% more than the previous year. Jetstar recorded its highest-ever number of customers, with around one in three fares costing less than A$100 amid rising cost-of-living pressures.

Australia's flag carrier Qantas Airways declared its first dividend in more than five years and reported an 11.2% increase in its first-half underlying profit on Thursday. The airline declared an interim dividend of 16.