Virgin Australia highlighted lower oil prices for its latest rise in revenues.
The carrier reported a six per cent increase in revenues, taking it to A$2.38 billion (£1.19 billion) compared to the same period a year earlier. This boost allowed the company to narrow its losses to A$47.8 million following a significant cost-cutting programme in the six months to December.
Australia's second-largest carrier, behind Qantas, has confirmed that it is expecting an improved performance in the second half of its financial year. It has benefited from reaching an agreement with Qantas to end a domestic price war which has had a damaging effect on both companies when it comes Australian flights.
In its trading statement, Virgin Australia stated that its underlying profit before tax was A$10.2 million, a significant improvement on the A$45.4 million loss in the first half of its financial year. It has made major strides in turning around its subsidiary Tigerair Australia, which posted a A$500,000 underlying profit.
John Borghetti, Virgin Australia's group chief executive, said: "Our people and their willingness to go above and beyond for our customers remains central to our ability to differentiate the Virgin Australia Group in the market.
"I would like to thank each and every one of our team members for their dedication to our business and to the successful execution of the Virgin Vision strategy."
Virgin Australia's latest trading update is a significant improvement on August's full year announcement. In the summer, the carrier recorded a A$355.6 million after-tax loss for the year ending in June, a trebling of the company's poor performance. At the time, the carrier blamed weak consumer sentiment and overcapacity in the market as the reason behind the slump.
Virgin Australia's current share price increased 1.05 per cent as of 09:41 GMT on Thursday (February 19th).
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.