Virgin posts first profit in more than a decade
Virgin Australia has recorded its first annual profit in more than a decade after its revenue more than doubled as the airline prepares to relist on the Australian stock exchange next year.
In documents filed with the Australian Securities and Investments Commission on Tuesday, Virgin said its net profit after tax was $129 million, from revenue of $5 billion in the year to June 30, up 124 per cent. A record demand for leisure travel, a rebound in small- and medium-enterprise business travellers and a more muted recovery in corporate travel drove performance in the 12-month period.
Jayne Hrdlicka says it is the first time in 11 years that Virgin has delivered a profit. Glenn Campbell
Chief executive Jayne Hrdlicka said it had been 11 years since Virgin Australia returned a profit, but warned the airline is part-way through a multi-year recovery.
“By creating a systemically lower cost-base and a conservative balance sheet, as well as investing heavily in technology and frontline, we are well-positioned for our future,” Ms Hrdlicka said.
Virgin’s underlying earnings before interest and tax swelled to $439 million and EBIT margins sat at 8.8 per cent, with its airline margins across domestic, regional and international reaching 7.4 per cent.In the first half Virgin said margins were 5 per cent and revenue was around $2.5 billion.
By comparison, Qantas’ underlying earnings hit a record $2.47 billion in the same period and its domestic margins were 18.1 per cent, while international margins climbed to a record 13 per cent.
Virgin said there had been a continued recovery in the aviation sector during the year, but high demand for travel and supply chains were normalising, helping to deliver some improvement in reliability and
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