The flag carrier on Thursday reported it made an underlying profit after tax of $2.47 billion for the 12 months to June 30, compared to a $1.86 billion loss the previous year. Revenue grew to $19.8 billion, from $9.1 billion last year.
"These results show a substantial turnaround in both our finances and service over the past year," chief executive Alan Joyce said.
It also announced plans to replace its ageing fleet of 28 Airbus A330s with two dozen new aircraft to meet what Mr Joyce described as "incredibly robust" travel demand.
Qantas will start taking deliveries of the dozen Boeing 787 Dreamliners and a dozen Airbus A350s in 2026/27 and continuing into the next decade.
"This is another multi-billion investment in the national carrier," Mr Joyce said.
The long-range, fuel-efficient aircraft will allow Qantas to open new routes, incoming Qantas Group CEO Vanessa Hudson said.
During the financial year, the flagship carrier's net debt incurred to stay afloat during COVID-19 was reduced 27 per cent to $2.89 billion after peaking at $6.4 billion at the height of the pandemic.
Mr Joyce said Qantas was 11 weeks away from bankruptcy during the pandemic but was now at its best financial position.
"The future for Qantas has never looked better," said Mr Joyce, who is retiring in November.
While Qantas still won't resume paying the dividends it cancelled during the pandemic, it will buy back $500 million in shares.
Mr Joyce also said the group was launching its 17th major sale in the past 12 months, with 1 million seats available across Qantas and Jetstar.
Qantas' domestic capacity is above pre-COVID-19 levels and international capacity is at about 80 per cent.
Mr Joyce said economy fares had dropped 12 per cent since peaking last December.
They should keep dropping as more international capacity comes online, he said.
By the middle of next year Qantas' international capacity should be at pre-COVID levels, which Mr Joyce said was the fastest it could get wide-body aircraft back in the air.
