There’s been a lot of talk about Qantas on this site. We’ve highlighted the good, the bad, and the ugly but this week, the Flying Kangaroo appears to be on the “runway to recovery.”

The airline is ramping up activity and taking off in 2011, as it announced yesterday that its underlying profit before tax for the half year ending December 31 is up 56 percent at $417 million. The airline can thank the rise in business travel and the slowly recovering global economy for the positive news, because we all know 2010 was a tough year for Qantas. The fallout from the A380 engine failure signaled doom, but the airline is already bouncing back.

Despite the positive results, Qantas will not pay a dividend and will instead spend “significant capital investment is being undertaken, reflecting a fleet renewal to bolster the foundations for future growth.” The airline also said it is purchasing ten new planes and leasing an additional 18 by 2013—clearly signaling it will ramp up more flights.

Qantas CEO Alan Joyce said the Group is well positioned because of its ability to capitalize on both the business and leisure sectors as domestic markets continue to recover. He also said the company expects even better results in the second half of FY11 will be higher than the same period in FY10.

However, not all of Qantas statements were positive. As mentioned here two weeks ago, underlying fuel costs are estimated to increase to around $2 billion due to higher forward market jet fuel prices and increased flying. Fuel surcharges, fare increases and hedging are being used to mitigate the impact of fuel price rises.

Also, the recent weather events that have affected the country have impacted our airlines as well. The Queensland floods have cost Qantas up to $55 million, while Cyclone Yasi in North Queensland has cost up to $15 million. The fallout from the engine issues related to the A380s have cost the company nearly $80 million.