Virgin Australia has this morning revealed its half-year results with an underlying pre-tax profit of $112.3 million, making it the airline’s best performance since 2008.
Virgin Australia’s half-year net profit has grown to $74 million, from just $4 million last year, a difference of almost $70 million.
So what has fueled such a turnaround?
Virgin Australia Outgoing CEO John Borghetti said the strong results were driven by record performance in domestic business, supported by stable market conditions, disciplined capacity management, continued effective cost control and stronger passenger yields.
“We’ve made solid progress in strengthening the financial foundations of our business. Today’s results continue to demonstrate the ongoing success of our cost transformation program which is improving cash flow and reducing financial leverage to deliver sustainable profitability.”
Virgin Australia Outgoing CEO John Borghetti
He said the airline’s domestic operations were performing at an “all-time high” with domestic passenger numbers up 4.1%.
Virgin’s international segment still recorded a $12 million loss, despite passenger numbers rising 8.2% with the start of daily flights from Sydney and Melbourne to Hong Kong.
John Borghetti was still unable to give investors any outlook beyond an expected 7% rise in third-quarter revenue, citing political uncertainty and continued oil price fluctuations.
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