Virgin Australia books still have red ink but the pool is shrinking as the airline restructures.
The airline today posted a full year statutory loss of $220.3 million, an improvement of $38.9 million on 2016.
The underlying loss before tax was $3.7 million. Revenue was $5.04 billion, an improvement of $26.3 million.
“Throughout the 2017 financial year, the Virgin Australia Group maintained a strong focus on improving its balance sheet which is yielding positive results,” says CEO John Borghetti.
“Today, we reported the first positive free cash flow result since the 2012 financial year and the Group’s highest reported cash balance as at 30 June.
“We have also delivered a 40% improvement in Financial Leverage compared to the end of the 2014 financial year following an $839 million reduction in Net Debt.
“The group also concluded the first year of our three year Better Business program, which is designed to reduce our cost base, enhance our cash flow and improve our capital position.”
Virgin says it’s ahead of schedule with the program’s implementation and is now on track to deliver $350 million a year in annualised net free cash flow savings by the end of the 2019 financial year, a $50 million increase on the original target.
No dividends were declared.
The full year numbers: