Qantas ekes out modest profit Qantas has lifted its bottom line back into the black, posting a modest full-year net profit of $6 million, a year after recording a historic loss of $244 million. Despite tough competition on international and domestic routes, and high fuel prices, Qantas more than doubled its underlying earnings to $192 million. Australia's largest airline has also named two new board members in investment banker Maxine Brenner and former Ericsson executive Jacqueline Hey. Modest result: Qantas has posted a thin profit in a tough market. The airline also announced that Patricia Cross, who has been on the board since 2004, will step down in October. It will leave the board at 10 directors. Revenue inched up 1.1 per cent to $15.9 billion. The airline again said it would not pay an interim dividend, continuing a policy in place since 2009. The domestic premium operations, Jetstar and the frequent flyer division all made a profit, while the international operations halved its underlying losses to $246 million. Qantas shares soar Investors cheered the result, pushing up Qantas shares 6.5 per cent to $1.31 in early trade. Morningstar analyst Nathan Zaia said the result was bit better than he expected overall. "Importantly the international turnaround strategy is paying off," Mr Zaia said. Improving the division's losses by $240 million is a massive achievement, very meaningful when the whole group is only making $372 million. Much is being made of a potential lift in consumer confidence post the election, but we think the bleeding in the domestic business, across both the flagship Qantas banner and Jetstar, is more to do with defending market share against a loss-making Virgin Airlines. Chief executive Alan Joyce said the market was very tough but the airline was focused on the elements it could control. Jetstar's underlying pre-tax earnings fell by 32 per cent to $138 million for the year, which Mr Joyce said reflected tough trading conditions in Australia and start up losses in Japan and Hong Kong. Qantas's frequent-flyer division, which has become the driver of the group's earnings, reported a 13 per cent rise in pre-tax earnings to $260 million. It now has 9.4 million members and the airline is targeting 10 million in the new financial year. The airline will also recommence its share buy-back program, flagging the purchase of up to $100 million worth of shares. More asset sales Qantas has also announced that it will sell its defence services division, whose main operation is located at Richmond in western Sydney, to Northrop Grumman for $80 million. Mr Joyce said the new owners expected to offer employment to the 320 employees at Qantas Defence Services, which will be renamed. The airline has pursued a strategy of selling non-core assets in recent years. Mr Joyce said there remained ""a lot of bedding down"" of the Emirates alliances in the new financial year but by 2014-15 it expected the full benefits of the tie-up to flow through. Investors have been eager to hear about the benefits of the Emirates alliance, which was launched in late March, and the likelihood of a recovery in the new financial year. The Emirates alliance made only three months of contributions to the full-year result. The Emirates alliance has been highlighted as key to helping Qantas turnaround the performance of its international operations, which have faced stiff competition from foreign airlines. Singapore Airlines, Cathay Pacific and Malaysia Airlines have been increasing flights to Australia. The airline did not give earnings guidance for the next financial year, citing volatile conditions. Qantas" result on Thursday came as Air New Zealand more than doubled its annual profit to $NZ182 million and vowed to improve on the result in the new financial year amid encouraging signs of demand from travellers.