Qantas has posted record profits of A$1.42 billion – its best financial result in the Australian airline’s 95-year history.

Profits have almost doubled from last year and follow a major restructuring process in 2014 when the airline posted record losses of A$2.8 billion.

Qantas said the profits mean it can resume dividend payments, reward 25,000 EBA-covered employees with a one-off cash bonus, and extend wifi to Qantas’ regional and international fleets as well as finialising the network and customer experience of the Qantas Dreamliner.

To achieve the turnaround, the carrier has cut capacity, reduced staff and benefited from a slump in oil prices.

Chief executive Alan Joyce said the result demonstrated the success of Qantas’ strategy to build a strong, sustainable future for the national carrier.

“Our transformation program is paying dividends for our shareholders, our customers and our employees,” Mr Joyce said. “Our people can be incredibly proud of what they’ve achieved. It’s thanks to their skill and commitment that we’re announcing a record profit today.

“This was a true team performance, which shows that our strategy is the right one for the tough markets we’re operating in and the long-term opportunities we see ahead of us.

“Transformation has made us a more agile business, created value for our shareholders and given us a platform to invest for the future. Qantas is stronger than ever, but we’re also determined to keep changing and adapting so that we can succeed no matter what environment we’re in.”

Qantas said fares are now up to 40 per cent lower than a decade ago because of “effective fuel hedging” which saw the Qantas group secure a A$664 million benefit from low oil prices.

Qantas Domestic, Qantas International, Jetstar and Qantas Loyalty all had record results and increased their margins in financial year 2016.

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