Virgin and Tigerair Australia see profit turnaround
The three months to December 2014 was a profitable time for Virgin Australia, making a net profit of AUD $11.3 million and a pre-tax profit of AUD $55.3 million, according to eGlobal Travel Media.
Chief financial officer Shankar Narayan said Virgin Australia’s second quarter performance represented a continued turnaround, thanks largely to carrying more passengers and lower fuel prices.
Narayan explained that Virgin was sticking to its 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.”
Virgin’s low-cost subsidiary Tigerair Australia was also profitable making AUD $500,000 in the second quarter, compared to an underlying loss in the previous corresponding period of AUD $15.5 million.
Rival Australian airline Qantas is also set for to announce an improved performance, expecting to have returned to underlying profitability in the first half of 2014/15.
Stay tuned for Virgin Australia’s full half-year results on 19 February 2015.