Virgin Australia reported an interim revenue of AUD$2.8 billion in the six-month lead-up to 31 December 2023, reflecting an uptick of $300 million on the same period last year and a strong start to 2024.
The airline reported a first-half profit of AUD$236 million due to continuing strong travel demand and an increase in profit margins to 8.5 per cent, up from five per cent compared to the previous period.
The news comes as CEO Jayne Hrdlicka announced she was stepping down from the top position after almost four years with a worldwide search underway for her successor.
The carrier, acquired by US private equity firm Bain Capital in 2020 for AUD$3.5 billion, is not listed on the Australian Stock Exchange (ASX) and therefore not required to report publicly.
However, Virgin Australia seems keen to transparently disclose its positive results and showcase its strong position ahead of its potential IPO (initial public offering) float this year.
After its buyout, VA repositioned as a value carrier and rebuilt its offering to return the airline to profitability and a sustainable future.
What’s next for VA?
Virgin Australia is now in the second phase of its transformation, targeting continued growth and margin expansion to secure its long-term financial sustainability and strengthen its competitive position in the Australian market.
Ms Hrdlicka said: “We are in the midst of the next phase of our transformation program and there is a lot to do and an IPO to deliver.”
“The next phase of this journey is another three to five years, making now the perfect juncture to begin the process of leadership transition to deliver the next few chapters of what I’m sure will be a significant long-term success story.”
However, Reuters reported that Ms Hrdlicka internally noted turbulence ahead for the remainder of the fiscal year. “The second half of the financial year will be tough with aggressive market pricing and strong capacity growth and we need to stay focused on the execution of our plans,” she said in a memo.
