Virgin Australia improved its full 2015 year bottom line by $261.8 million as it heads towards profit again after an end to the so-called seat war with Qantas.
The airline said the statutory loss after tax was $93.8 million for the financial year ending June 30, an improvement of $261.8 million on 2014’s $355.6 million loss.
CFO Sankar Narayan says the result represents a significant improvement.
“We expect to see a continued positive trajectory,” he said in a quarterly market update. “The key highlights in this result have been our performance on non-fuel costs, success in attracting high yielding market segments and the improved performance of Tigerair Australia.”
The loss of $36.9 million for the fourth quarter of the 2015 financial year was a $46.2 million improvement on the same period in 2014.
Much of the loss was made up of restructuring costs and the impact of ineffective hedges of $24.9 million.
Virgin is getting better passenger yields after the end of the capacity war with Qantas. Virgin is now competing more on service, with all its flights now coming with free luggage and food.
Its shares are up today about 0.56% to $0.448.