The second half of 2014 proved to be profitable for Virgin Australia, which saw its underlying profit before tax rise to $10.2 million.
The result was an increase from a loss of $45.4 million during the corresponding period the prior year.
Chief executive, John Borghetti said the rise came from both the company’s focus on driving more yield through domestic traffic and the decline in oil prices.
A decrease in fuel prices sees the airline return to black.
The drop in fuel cost saw the airline benefit around $3 million in comparison to the first half of the 2014 financial year.
“[This is] due to the nature of the hedging-program we have in place.”
John Borghetti, Virgin Australia CEO
Mr Borghetti expects the Group to further benefit from the ‘strong hedging’ in the second half of the 2015 financial year.
In the domestic market, yield increased three percent compared to the first half of the 2014 financial year, while international revenue only increased by 1.1 percent,
The company’s head said the airline is looking to build the overseas sector by improving the performance of the business.
Virgin will continue to adjust its international operations to bring in more revenue.
So far, Virgin has already adjusted timing and services on select international routes and introduced Business Class on flights to the Tasman and the Pacific.
The airline has also consolidated its Los Angeles flights from three to two Australian hubs.
Meanwhile earlier this year, Virgin completed its remaining 40 percent acquisition of Tigerair Australia.
The budget airline’s financial performance has been consolidated into the overall performance of the Virgin Australia Group.
But on its own, Tigerair achieved an underlying profit of $500,000 in the second quarter of the 2015 financial year, which Borghetti said was driven by delivering cost synergies.
During the second half of the 2015 financial year, Virgin said it will continue implementing its Virgin Vision 2017 strategy, which launched six months ago.
The Virgin Vision is to become Australia’s favourite airline by focusing on growing its business, driving yield enhancement, implementing a new cost program, optimising its balance sheet, setting a new standard in customer service and developing people to their full potential.