SYDNEY (REUTERS) - Australian flagship airline Qantas Airways said its first half profit more than doubled, hitting a record, as it cut costs and reaped the benefits of a lower Australian dollar and oil price.

Qantas said underlying profit before tax, the most closely watched measure, was A$921 million (S$932 million) for the six months to Dec 31, up from A$367 million the previous year and near the top of guidance it gave in December of between A$875 million and A$925 million.

The company said revenue rose 5 per cent to A$8.5 billion, while costs were fell 7 per cent.