Australian flag carrier Qantas said half-year net profit had plummeted 42%, mainly because of the drying-up in passenger numbers since 11 September, and comparatively high fuel costs.

During the six months to end-December, Qantas recorded a net profit of 153.5m Australian dollars (�56m; $78m).

Qantas chief executive Geoff Dixon said business so far in 2002 indicated that the airline was on track to deliver a full-year pre-tax profit in line with last year's 550m Australian dollars.

"However this could prove difficult if there is further volatility in the market," he warned.

The airline was cheered that it had remained in profit, unlike many of its rivals.

Qantas chairman Margaret Jackson said the carrier's performance in the most tumultuous period in the history of aviation had been outstanding.

Qantas' position has been strengthened by the collapse last September of its major domestic rival, Ansett.