"All indications are that it will be difficult to match this year's record profit in 1998-99," said chairman Gary Pemberton after the airline posted a net profit of A$304.8 million ($180 million).

Qantas acted quickly to stem and offset potential losses from the Asian crisis when it bit last year, quickly suspending certain routes.

Although results from Asia were down, a strong performance from the airline's European and North American operations and a 27-per cent rise in Australian earnings helped Qantas to its record profit.

But Pemberton said the airline faced continued uncertainty because of Asia-inspired cost pressures.

"The reactions by other carriers in terms of prices and capacity as a result of conditions in Asia have been well documented and will lead to more volatility and uncertainty in market conditions in 1998-99," he said in a statement.