Virgin climbs back to profit

Virgin climbs back to profit

Virgin climbs back to profit

Posted 28 August 2012, 9:23 AEST

Virgin Australia has climbed back into the black, with a profit of $22.8 million.

That is a $90.6 million turnaround from last year's loss.

The airline's underlying profit, before tax and excluding one-off costs, rose by $149.1 million to $82.5 million.

Revenue rose nearly 20 per cent, to just under $4 billion, and Virgin's chief executive John Borghetti says much of the improvement is due to attracting more higher value business travellers.

"Our progress in attracting higher yielding corporate and government customers has been a key driver of our improved profitability," he noted in the report.

"This segment now makes up 20 per cent of our domestic revenue and, encouragingly, over the last three months we have averaged above this level."

Mr Borghetti says Virgin's increased international alliances have also boosted its bottom line.

"We have also benefited from increased interline and codeshare revenue from our international alliances, up 158 per cent on the prior corresponding period, and the strong revenue performance of our regional ATR-72 turboprop operations," he added.

Despite posting a modest profit, Virgin has not declared any dividend for shareholders.