Australia's Qantas Airways Ltd posted a significant turnaround in its profit on Thursday, underpinned by a continued strong rebound in travel demand, while announcing a share buyback of A$500 million.

The airline posted an annual underlying profit before tax of A$2.47 billion ($1.60 billion) for the year ended June 30, compared to a loss of A$1.86 billion a year ago.

Analysts were expecting a profit of A$2.45 billion, according to Refinitiv Eikon.

($1 = 1.5437 Australian dollars)

(Reporting by Roushni Nair and Archishma Iyer in Bengaluru; Editing by Shailesh Kuber)