Virgin Australia is back in the black with improved trading conditions pushing underlying profit before tax to $55.3 million for the second quarter.
This is a $47.6 million improvement and equates to a profit of $10.3 million for the financial year to the end of December.
The result follows Qantas’s return to profit, on the back of a massive $2 billion restructuring program, and as head-to-head discounting on airline seats eases.
Virgin also saw a $7 million benefit from falling fuel prices in the second quarter compared to the prior year.
Virgin CFO Sankar Narayan says the result represents a continued turnaround.
“We are delivering on our plan to maintain our cost advantage through the disciplined execution of our cost reduction program, while continuing to drive revenue growth from the Corporate, Government and Charter market segments,” he says.
“We are seeing some improvement in domestic trading conditions compared to the first quarter; however consumer sentiment has been relatively weak and international yield recovery has been constrained by continued pressure in the South East Asian and Europe/United Kingdom markets.”
Virgin’s shares are trading about 4.5% higher to $0.465.