Qantas (ASX: QAN) has reported its first-half results for FY20. We take a look at the company's headline figures, key commentary and guidance outlook, plus review the share market's reaction across the trading day.

Headline result

This morning's result from Qantas is headlined by a drop in underlying profit before tax of 0.5%, falling to $771m.The company did, however, report an increase in statutory Earnings Per Share (EPS), which rose 3.2% to 28.8c.Qantas has declared an interim dividend of $0.135 per share, fully franked, which is 12.5% higher than the prior corresponding period. The ex-dividend date will be 2nd March, 2020. The record date will be the 3rd March, 2020. In addition, the airline will also run an off-market share buy-back up to $150m.The market responded positively to Qantas' 'rationalisation' plan developed in response to the Coronavirus, with shares in the airline surging higher by 5.9% to $6.67.

Key commentary

Australia's biggest airline has reported statutory profit before tax of $648m, which is a reduction of 6.2% against HY19.Some of the key factors weighing on the company across the half included foreign exchange related costs, global freight weakness, disruption in Hong Kong, plus higher operating costs attributable to the disposal of domestic airport terminals. These issues accounted for as much as $174m in costs. Nonetheless, improving market share in key markets, as well as transformation and "capacity discipline" helped offset these costs.Domestically, the airline, and its Jetstar offshoot, both battled subdued travel demand. This saw underlying EBITDA in this segment fall $47m to $645m. Market share among SME customers remains strong, with management citing this and corporate flyers as an area of growth.Passenger revenue and EBIT in the company's international segment performed well, despite the headwinds mentioned above. The division reported a 2.5% increase in underlying EBIT to $122m.Qantas' Loyalty division has also helped underpin the airline's result, with record numbers posted. Underlying EBIT grew 12% to $196m.

Guidance outlook

Since the end of HY20, Qantas has observed weaker demand in areas like Hong Kong, Singapore and (partially) Japan due to the Coronavirus. Qantas intends to cut capacity into markets affected by the Coronavirus in the second-half, while still retaining some flexibility.The airline expects the net negative impact of the Coronavirus to be between $100-150m EBIT in 2H20, with international capacity across the group forecast to drop 3.8%, and domestic capacity to deteriorate by 2.3%.It is expected that $400m in savings will be derived from "transformation" activity, with domestic terminal sales reducing earnings by $100m.