Qantas has paid off $450 million in debt eight months early, leaving less debt to be repaid in the coming year.

The airline used the proceeds of a recent seven year loan from investors, in the form of unsecured notes, to repay the debt.

That leaves $281 million in debt to be repaid during the 2015/16 year, and $550 million in the following year.

Qantas had its credit rating downgraded to junk status in late 2013, which would increase the interest it pays on its loans.

It said it currently holds over $3 billion in cash and undrawn bank funding.