efe-epaSydney, Australia

Australian flag carrier Qantas posted a 17 percent drop in profit before tax owing to an increase in fuel costs and the impact of a weaker local dollar, the company announced Thursday.

In the financial year that ended on June 30, the company posted a profit before tax of AU$1.3 billion ($879 million).

Qantas said the results were "impacted by an (AU)$614 million increase in fuel costs from higher oil prices" as well as by a AU$154 million impact of the foreign exchange on non-fuel net expenditure.

The company's CEO Alan Joyce said that the results were "particularly positive" given the market conditions and showed the "strength" of the group.

"Even with headwinds like fuel costs and foreign exchange, we remain one of the best performing airline groups in the world," Joyce said in a statement. EFE-EPA