Qantas will pay more for its jet fuel in the coming year

Qantas said its full-year net profits rose to 763.6m Australian dollars (�322m; $581m), from A$648m last year.

However, the airline said fuel as a proportion of its operating costs would rise to almost 30% next year, up from the current level of 19%.

Qantas has been cutting management jobs in an attempt to reduce its costs.

A three-year, A$1.5bn cost-cutting drive has seen the airline shed more than 200 senior staff in recent months. It said further staff cuts were likely.

'Extraordinary cost'

The cost of jet fuel traded in Singapore has risen by more than 40% so far this year.

"The extraordinary cost of fuel will have a substantial ongoing impact on the company," Qantas said.

"While further reforms in the business are under way, and coupled with the high fuel price, we do not expect to achieve the same levels of profitability in the current financial year."

The downbeat forecast was matched by rival Australian carrier Virgin Blue.

The discount airline, which competes with Qantas' own budget carrier Jetstar, said its annual profits would fall by as much as 43% because of the high cost of fuel.

In July, Singapore Airlines warned that high fuel prices could hit its earnings after the company reported a second straight quarter of lower profits.

Separately, Qantas said it planned to replace its wide-body Boeing 767-300 aircraft, and would approach the US manufacturer and European rival Airbus.