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Lower fares and stronger competition have taken their toll on profits at Qantas for the six months to December.

More empty seats on flights contributed to a 7.5% fall in underlying pre-tax profit to A$852m ($656m; £527m), while revenue slipped 3.3% to A$8.18bn.

The results were better than guidance given by the airline.

Shares rose more than 5% in morning trading in Sydney to A$3.73, although the stock is flat over the past 12 months.

Chief executive Alan Joyce, external said: "The international market is tough because of capacity growth and lower fares, and Qantas International is not immune from those pressures."

The airline planned to remain disciplined on capacity, keep costs down and introduce new aircraft and offerings such as high-speed Wi-Fi.

Qantas will start flying the Boeing 787-9 Dreamliner this year.

Qantas also said it expects to start offering free onboard Wi-Fi on domestic routes in the coming weeks, followed by international services later in the year.

The company did not give annual profit guidance as the short-term outlook remains subject to variable factors, including "oil price movements, foreign exchange movements and global market conditions".

In the year to June 30, Qantas posted a record net profit of A$1.42bn and announced its first dividend payout to shareholders in seven years.

That followed cuts of A$2bn to costs and restructuring, with thousands of jobs axed and dozens of aircraft sold or orders deferred.