SYDNEY, Feb 27, 2025 (BSS/AFP) - Australian airline Qantas said Thursday profits are up and demand for flights looks strong but it is still trying to win back trust after a string of scandals.

The carrier -- long seen as the "spirit of Australia" -- is also set to face foreign competition in its domestic market, with Qatar Airways getting the green light to buy a chunk of troubled Virgin Australia.

Qantas said net profit rose 5.7 percent year-on-year to Aus$923 million (US$582 million) in the six months to December 31, 2024.

Revenue climbed 9.0 percent to Aus$12.1 billion.

"We're seeing progress from the investments we are making for our customers and people but we know there's more work to do to consistently deliver in the moments that matter," said chief executive Vanessa Hudson.

"This is a key part of rebuilding trust and continues to be our focus."

Under former chief executive Alan Joyce, Qantas angered once-loyal Australians by charging high ticket prices and laying off staff despite receiving a multi-billion-dollar, taxpayer-funded bailout during the Covid-19 pandemic.

The carrier was also embroiled in a bruising "ghost flights" scandal that saw it pay a large fine for continuing to sell seats on long-cancelled flights.

Qantas now faces the prospect of competition in the home market it has long dominated, commanding a market share of more than 61 percent.

Qatar Airways will be allowed to go ahead with plans to buy a 25 percent stake in Virgin Australia for an undisclosed sum, Treasurer Jim Chalmers said Thursday.

"It is expected to strengthen competition in the aviation sector," Chalmers said in a statement.

Qantas said it expected strong demand across its portfolio in the first half of the 2025 calendar year, with holiday and business passengers' intention to travel remaining high.

The airline also announced it would make dividend payouts to shareholders for the first time in nearly six years, citing its stronger financial position.