QANTAS profit.
Qantas has announced its expecting a massive jump in profits for the first six months of 2016, and a new deal with Woolworths around frequent flyer points.
In a market update, the airline said it expects first-half pre-tax profit to be in the range of $875 to $925 million, compared to a profit of $367 million posted in the first half of financial year 2015.
Qantas said a combination of falling oil prices and its cost-cutting program had helped lift margins.
"We've seen improved revenue in our domestic and international operations [and] reduced costs," said the airline's chief executive Alan Joyce in a statement to the ASX.
Mr Joyce said the airline is focussed on delivering the best service to customers.
Qantas is also expecting a record half-year result from its loyalty program.
In a separate announcement, Qantas and Woolworths have renewed their frequent flyer points partnership for another three years.
Woolworths Rewards members will be able to claim Qantas points starting in the first half of 2016, with 10 Woolworths dollars worth 870 Qantas points.
The supermarket giant suffered a large consumer backlash recently when its previous Qantas points system was scrapped in favour of 'discount dollars'.
Despite the apparent good news, both companies have seen a subdued reaction from investors.
Qantas shares were up 0.5 per cent to $3.80 by 10:50am (AEDT), while Woolworths was 0.4 per cent higher at $22.69, in a broader market up 0.5 per cent.