QANTAS Airways will spin off its $3 billion-plus frequent flyer operation, following in the path of Air Canada which transformed its equivalent arm into a company worth more than the airline itself.

The Australian carrier will seek to list the new vehicle on the Australian Securities Exchange within nine months.

Qantas will keep a controlling stake and bring in as a partner Aeroplan, the highly successful Air Canada offshoot.

Details of the proposed spin-off are expected to be unveiled on Thursday when the company releases a record annual pre-tax profit of an estimated $1 billion.

The company is also expected to announce a capital return of up to $2 billion in the form of a special dividend and share buyback.