Virgin Australia‘s business is creeping closer to the black, with fourth quarter profits showing major improvements compared to the same period last year.
From April to June this year, the airline reported an underlying loss before tax of $36.9 million – an upswing from the $46.2 million loss during the same three months in 2014.
The statutory loss after tax over the three months was $17.8 million an improvement of $160.4 million on last year.
For the year ending 30 June 2015, the airline expects to have a statutory loss after tax of $93.8 million, which is a $261.8 million decrease from the $355.6 million loss in the prior year.
Loss in profits continues to come from the airline’s restructuring and transaction costs. Ineffective hedging alone lost the airline around $24.9 million.
Virgin’s Group Chief Financial Officer said profit improvements are expected to continue on a ‘positive trajectory’.
“The key highlights in this result has been our performance on non-fuel costs, success in attracting high yielding market segments and the improved performance of Tigerair Australia.”
Sankar Narayan, Virgin Australia Group Chief Financial Officer
Speaking of Virgin’s budget airline, Tigerair Australia recorded an underlying loss before tax of $9.8 million for the quarter – an improvement on the $25.8 million the prior year.
Further information on Virgin’s profits will be released on 7 August.
