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Friday, April 19, 2024

Virgin Australia posts first profit in 11 years as travel demand returns

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For the fiscal year 2023, Virgin Australia reported its first profit in 11 years. The company attributes this to a robust rebound in demand for leisure travel following the COVID-19 pandemic.

The airline stated that it had a statutory Net Profit After Tax (NPAT) of AU 129 million ($82.5 million), and that its revenue had increased by more than double from the previous year to AU 5 billion ($3.2 billion).

Underlying earnings before interest and taxes (EBIT) for Virgin Australia were AU 439 million ($281 million), or 8.8%.

“These results are an important milestone for Virgin Australia. It has been 11 years since Virgin Australia returned a profit, and our results signal that the transformation of Virgin Australia is progressing well. We have a long-term commitment to transformation and are only part-way through this multi-year journey,” Virgin Australia CEO Jayne Hrdlicka said in a statement.

Hrdlicka added: “By creating a systematically lower cost base and a conservative balance sheet as well as investing heavily in technology and our frontline, we are well positioned for the future.”

The airline’s recovery, according to Virgin Australia, has been made possible by record-high demand for leisure travel, despite the slow recovery of business travel.

The airline claimed that despite the pressure brought on by rising living costs, there is still a “healthy demand” for travel.

“Value and choice are core to our business and as the continuing rise in cost-of-living impacts household budgets, we believe we are well positioned to continue to provide customers with the best value in the market,” Hrdlicka said.

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