Virgin Australia posts strongest profit result in five years

Virgin Crew on Tarmac
Travel News 12 Feb 2016

Virgin Australia Group has just announced an Underlying Profit Before Tax of $81.5 million for the first half of the 2016 financial year, an improvement of $71.3 million on the same period the year prior.

The company reported its strongest Statutory Profit After Tax since the H1 FY10 of $62.5 million, up an impressive $110.3 million on the prior corresponding period.

Group revenue increased 11.8% on the first half of the 2015 financial year and Group Underlying EBIT improved approximately 197% to $161.4 million.

CEO John Borghetti said the company continues to improve its operational and financial performance and is "on track to achieve its targets for the end of the 2017 financial year".

Virgin Australia Domestic recorded an Underlying EBIT of $130 million, up 86.5% on the corresponding period in H1 2015.

Borghetti also confirmed volcanic activity in Bali cost the carrier's international arm $19.2 million, but said Virgin Australia International is forecast to deliver a profit by the end of the 2017 FY.

Virgin's wholly-owned low-cost carrier Tigerair Australia acheived its highest half year Underlying EBIT of $13.9 million since commencing operations, he said.

"The Group also maintained its strict discipline on costs during the first half, while continuing to invest in revenue growth... The Group is on track to exceed the target of $1.2 billion cumulative cost savings by the end of the 2017 financial year," Borghetti added.

 

Image: Virgin Australia