Virgin continues to improve its financial performance delivering a profit in the first quarter of the 2016 financial year. The company has also reaffirmed its FY16 forecast for returning to profitability for the full year
Virgin has started the first quarter of FY16 positively, delivering an underlying profit before tax of $8.5m which represents a $73.3m improvement on the first quarter of FY15 on a like-for-like basis. The company benefited from higher domestic yields (through higher fares), lower fuel costs and a turnaround in performance for its low-cost carrier Tigerair Australia.
Tigerair also delivered significantly improved performance for the quarter, recording positive earnings before interest and tax (EBIT) of $0.4m. This represents a $20.2m improvement when compared on a standalone basis to the corresponding period in FY15. The carriers’ positive result was driven by significant improvements in revenues as well as cost cutting.