Australian airline company Qantas Airways (ASX:QAN) today announced its net profit for the year to June 30 slid 4.3 per cent to $112 million from $117 million in the previous corresponding period.

Underlying pre-tax profit for the year reached $377 million compared to $100 million in the prior period. This was in line with guidance of $300 million to $400 million.

The airlines said no final dividend will be paid. Dividend payments will resume depending on trading results, market conditions and the level of capital expenditure commitments.

Qantas, however, assured that conditions are improving.

According to Qantas chief executive Alan Joyce, first half underlying pre-tax profit for 2010/11 may be "materially stronger" than the first half of 2009/10, if present conditions carry on.

But he also warned movements in fuel prices, currency exchange rates and general trading conditions could easily affect earnings.

"It is therefore not possible to provide a more specific forecast at this time given the volatility and uncertainty of the aviation market," Mr Joyce said.

Qantas projects to boost its capacity in the first half of 2010/11 by 9.6 per cent compared to the previous corresponding period as conditions get better.

Mr Joyce said global demand and yield across the business and leisure sectors continue to strengthen and domestic business is also improving.

"The domestic leisure market continues to be highly competitive.

"However we expect this too will improve in the first half of the year."