Qantas Airways Ltd. said strong travel demand and the completion of its cost-cutting program will drive profit growth this year.

Full-year underlying profit before tax will rise to between A$2.43 billion and A$2.48 billion ($1.65 billion), the carrier said in a statement Tuesday.

Domestic capacity will be above pre-Covid levels by the end of the second half, and international capacity will reach around 100% of pre-pandemic levels by March 2024, the Sydney-based airline said.

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An existing A$500 million share buyback has been increased by up to A$100 million, Qantas said.