Qantas has posted its yearly results showing a drop in profits.

Australian airline Qantas has published its annual results showing a 4.3% drop in net profits but remains positive about its outlook.

The company’s underlying profit before tax was 377 million Australian dollars (£216m) for the year ending 30 June 2010 and falls in line with the airline’s predictions.

Both increased competition in Australia and the effects of the global recession have contributed to Qantas’ slight dip in profits.

The airline had also been hit hard by the disruptions caused by Iceland’s volcanic ash clouds.

Despite the drop, Qantas CEO Alan Joyce, said that the airline had performed well during the global downturn.

He said: “While global trading conditions remained challenging, they continued to improve, and the Qantas Group has delivered a strong result, more than tripling its full year-on-year profit.

“Qantas is one of the few airlines to record successive full-year profits and continues to hold an investment grade credit rating.”

Mr Joyce also predicts that profits will be “materially stronger” in the next six months as demand for business and leisure air travel increases.

Australia was one of the few major economies that did not fall into a recession during the worldwide downturn.