Virgin Australia has posted its first profit in 11 years for fiscal year 2023, crediting strong recovery in leisure travel demand after the COVID-19 pandemic.
The airline reported a statutory Net Profit After Tax (NPAT) of AU 129 million ( $82.5 million), adding that its revenue more than doubled compared to the prior year to AU 5 billion ($3.2 billion)
Virgin Australia reported an underlying earnings before interest and taxes (EBIT) of AU 439 million ($281 million), representing a margin of 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.”
Slow corporate travel buoyed by leisure demand
Virgin Australia also said that though business travel is making a slow return, leisure travel has seen record demand, enabling the airline’s recovery.
The airline said that it continues to see a “healthy demand” in travel as customers prioritize travel in the face of cost-of-living pressure.
“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.