To help reverse its sagging financial standing, flag carrier Qantas will feature supermodel Miranda Kerr in a national advertising campaign for the airline.

The company inked an agreement for Ms Kerr to promote the Qantas Club in a bid to retain frequent travelers and attract younger passengers who prefer rival Virgin Australia which is perceived as more youthful.

The Australian Financial Review said the supermodel would come out on billboards and ads in airport terminals as well as online ad. Ms Kerr is also the image model of department store David Jones. Her signing the deal with Qantas coincided with her arrival in Australia to launch David Jones's spring/summer fashion collection.

Celebrities are popular endorsers for air carriers. Virgin has Australian model Elle Macpherson to launch the air carrier's uniform in 2011 and Etihad tapped Dannii Minogue as its brand ambassador.

The campaign featuring Ms Kerr, an Australian, will cost $1 million. Ms Kerr, who started modeling at 13, became famous when she won the 1997 Australian nationwide model search hosted by Dolly magazine and became a Victoria's Secret Angels in 2007 which made her the first Aussie to participate in Victoria's Secret campaign.

Qantas, which cut its underlying profit before tax estimates last week to between $50 million and $100 million for the year ending June 30, 2012, named Ms Kerr brand ambassador in January this year. Actor John Travolta was the last celebrity that Qantas tapped in its advertising.

The air carrier attributed the profit downgrade to a $450-million pre-tax loss on its international division and $100 million due to industrial action.