Under-fire airline Qantas has said the number of cancelled flights, delays, and misplaced bags have dropped over the past two weeks as the company fights to return its operational performance back to pre-COVID levels.

However, the national carrier acknowledged it faces challenges for the remainder of the month, with school holidays starting in a number of states and the September 24 AFL grand final set to bring an influx of Sydney supporters to Melbourne.

In a statement released on Monday, the national carrier said 67 per cent of its flights left on time during August, up from just 52 per cent in July. For the first two weeks of September, that figure improved to 71 per cent.

“Performance will be tested in coming weeks with school holidays, long weekends and football finals driving high levels of demand at peak times,” a spokesperson for the airline said.

“Customers are encouraged to arrive at the airport at least 90 minutes ahead of the scheduled departure time for domestic flights and three hours ahead for international flights.”

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Qantas has been under heavy scrutiny in recent months as customers have raised concerns over a continued spate of delayed flights and misplaced bags. Earlier this month, an episode of the ABC’s Four Corners also aired claims of mismanagement and safety concerns at the airline.

Qantas is also struggling with a lack of staff due to COVID-19 and a tight labour market, an issue compounded by the airline’s 2020 decision to outsource its baggage ground handling, a move that was later found to be in breach of the Fair Work Act.

On Monday, Qantas said the number of flight cancellations was tracking at 2 per cent for the month so far, which is below pre-COVID levels.