Things are looking up for Virgin Australia, who has seen a AUD 213 million results turnaround.
The improvement has transformed an underlying loss of AUD 262 million in the 2014 financial year to an underlying loss of just AUD 49 million last year. Load factor, however, fell 1.6% for Virgin domestic and 2.4% for international.
A soft performance from the airline’s international business was the main factor in keeping Virgin Australia in the red, the Australian pointed out, despite the benefits of lower fuel costs.
The market estimates a profit this year of about AUD 145 millon.
Although Virgin domestic boosted yields by 2%, international yields tumbled by 4.6% in the fourth quarter.
The airline is expected to unveil some changes to its international operations when it releases full-year results next week.
Edited by William Sykes