Australian flag-carrier Qantas has seen profits rise, boosted by compensation from Boeing after it cancelled 787 orders and amid narrowing losses on its international operations.

The airline made a net profit of A$111 million in the six months to the end of December, up from A$42m a year earlier.

However, this figure includes A$125m compensation that Qantas received from Boeing.

Losses made during international operations also fell to A$91m from A$262m a year earlier.

Qantas has struggled to remain profitable on its long-haul routes in recent years, prompting chief executive Alan Joyce to launch a radical overhaul of the carrier.

Qantas has cancelled services on loss-making routes, streamlined some of its maintenance operations and cut jobs.

It has also formed an alliance with Emirates, with the two carriers agreeing to collaborate on pricing, sales and flight scheduling.

“We are now beginning to realise the benefits of the tough decisions that we have made over the past 18 months,” Joyce said.