In a recent financial update, Qantas (ASX:QAN), Australia’s flagship airline, reported a 12.8% drop in its first-half profit, coupled with an announcement of an additional on-market buyback up to A$400 million.

The airline showed an underlying profit before tax of A$1.25 billion ($785.88 million) for the six months that ended December 31.

This is a drop compared to the A$1.43 billion reported the year before.

The numbers fell short of a consensus estimate of A$1.26 billion, as presented by Jefferies.

Qantas is a major Australian airline, known for its domestic and international flight services.