Qantas chief executive Vanessa Hudson vowed the airline will keep growing its earnings, exploiting a strategy designed to turn Australia’s tyranny of distance into the carrier’s competitive advantage and withstand a potentially bulked-up competitor in Qatar.

In Ms Hudson’s first full-year result as CEO, Qantas unveiled $2.1 billion in underlying earnings, down 17 per cent on last year’s record $2.5 billion. The result was dragged lower by the return of both foreign competitors and big aircraft, prompting an 11 per cent fall in its international division’s earnings to $755 million.