Virgin Australia’s boss, John Borghetti, says the airline is in a better position for sustainable growth after recording a $71.3 million increase in underlying profits before tax for six months last year.
For the half year ending December 2015, the airline made $81.5 million, up from $10.2 million recorded during the same six month period in 2014.
The figure is a drastic improvement on the airline’s 2013/14’s $211.7 million loss and even tops 2014/15’s $49 million profit.
CEO, John Borghetti, attributed the increase in profit was driven by improvements in Tigerair’s business and cost cutting initiatives and said it came despite a $19.2 million impact caused by Bali’s volcanic activity.
“The group maintained its strict discipline on costs during the first half, while continuing to invest in revenue growth.”
John Borghetti, Virgin Australia CEO
To enhance current profits, Borghetti said the airline would release further cost savings by optimising its fleet with the sale of five Embraer 190s as well as taking advantage of the low cost of oil and optimising its balance sheet throughout the second half of the financial year.
He expects that by June 2017, the group would have exceeded its target of $1.2 billion cumulative cost savings.
“Delivering this type of performance isn’t possible without the hard work of our people.”
John Borghetti, Virgin Australia CEO
“I would like to thank every one of our team for their ongoing commitment to delivering our strategy.”
