This latest result follows the airline’s return to profit in 2023 after eleven years.
Virgin Australia released a glimpse into its financial performance yesterday but did not release an overall profit figure. Given it is majority owned by Bain Capital, it is not required to release its results.
The carrier, which operates mainly domestically, along with some short haul international services, reported underlying earnings before tax and interest of $519 million, up 18.2 per cent on last year’s results.
This is in contrast to results from Qantas, released in August, which showed Australia’s other major airline post a more than 15 per cent drop in earnings.
Over the year, Virgin moved 19.2 million passengers on an average of nearly 400 flights a day.
During the financial year, the airline also received six new Boeing 737 MAX-8 aircraft and refitted an additional 14 with new interiors.
“This is a strong result that demonstrates the success of our transformation program which has offset cost inflation and strengthened our balance sheet, enabling further strategic investments in our customers and people,” said Virgin Australia’s CFO, Race Strauss.
“While we are operating in an environment of higher costs, our disciplined approach to cost management has enabled us to deliver even better value for our customers.
“In FY25, Virgin Australia will build on this momentum continuing its focus on ensuring the execution of transformation initiatives which will be crucial to mitigating the ongoing impact of inflation.”
Virgin’s second year of profitability comes just over four years after the airline went into voluntary administration during the early pandemic.
“I am particularly pleased to present such a strong set of results that are the product of four years’ hard work by the wonderful and talented team at Virgin Australia,” said Virgin Australia CEO, Jayne Hrdlicka.
“We have together rebuilt Virgin Australia as a profitable, customer centric, value carrier that celebrates its people as the centrepiece of its strategy. There is a well-defined plan for continued transformation which will deliver further customer, team and shareholder benefits.
“Continued improvement in profitability means we are well-positioned to deliver great value and choice to Australian travellers. It is essential to our ability to re-invest in our business and customer experience, and vigorously compete with our major competitor,” she said.
Virgin’s results come two weeks after the airline announced Qatar Airways’ intention to buy a significant majority stake in Virgin Australia.
