Qantas is performing better than many other international airlines despite a predicted profit slump, retired chief executive Geoff Dixon says.
Mr Dixon - who handed over the reins of Qantas to new chief executive Alan Joyce on Friday - told Sky News on Sunday that global economic turmoil was hurting many airlines.
On Tuesday, Qantas forecast a pre-tax profit of around $500 million for 2008/09, down from $1.4 billion the year before.
The airline also said it would cut capacity equivalent to the grounding of 10 aircraft.
"Given what's going on in the world at the moment, and in particular what's going on in the aviation industry, I think it's going to be a pretty good profit," Mr Dixon said.
"Many airlines are saying they won't make any money at all."
In July, Qantas axed 1,500 jobs, scrapped its hiring plans and cut capacity growth to zero in response to a surge in the oil price, which resulted in the collapse of more than 26 airlines worldwide.
But Mr Dixon said he was handing a strong airline over to Mr Joyce.
"This is a very strong airline, almost twice the size of what it was eight or nine years ago.
"It has been consistently profitable."
Mr Dixon said Qantas had to merge with another airline to achieve the size necessary to survive in the global aviation industry.
"Qantas has got to be allowed to take part in an industry consolidation the same way as everybody else - if the right partner comes along," he said.
