Virgin joined the rest of the Australian airline industry by posting a loss of $355.6 million for the full year to the end of June.
“The 2014 Financial Year has seen one of the most difficult operating environments in the history of Australian aviation,” says CEO John Borghetti.
The year saw excess market capacity, weak consumer sentiment, continued economic uncertainty and the $51.6 million cost of the carbon tax.
The loss included $117.3 million of restructuring costs as Virgin increased its focus on driving down costs during the second half of the 2014 Financial Year
The underlying loss was $211.7 million but the statutory loss of $355.6 million compares to $98.1 million for the previous year.
Yesterday Qantas posted a record loss of $2.84 billion. It cited overcapacity in the domestic market and increased international competition.
Borghetti says Virgin attracted high yielding passengers and contained cost growth over the full year.
But underlying revenue performance was impacted by the challenging operating conditions.
Virgin further increased revenue from the corporate and government markets which now represents over 25% of our domestic revenue, exceeding the original goal of 20%.
Borghetti is positive about the outlook for the airline.
“While the 2014 Financial Year has been an extremely tough year for the industry, I am confident that the Virgin Australia Group is in a strong strategic position going forward,” he says.
“This next period for us is about maximising the group’s potential, by extracting value from the business and generating sustainable profitability.”