Virgin Australia returns to profit
Virgin Australia has upstaged its main rival Qantas by posting a net profit of AU$22.8 million (US$23.7m) for the full-year 2011-12.
The result marks a major turnaround for the carrier, which recorded a AU$67.8m loss the previous year, and eclipses Qantas, which recently posted a net loss of AU$244m. Virgin Australia’s revenues also increased, climbing 19.8% to AU$3.9bn.
The airline’s Chief Executive Officer, John Borghetti attributed the improved result to the group’s turnaround strategy, which is focused in drawing frequent fliers away from Qantas and building a network of international alliance partners, such as Etihad Airways, Singapore Airlines and Air New Zealand.
“Over a very short period we have repositioned Virgin Australia as a genuine competitor on all key customer measures, including product, network and loyalty programmes, while maintaining our service and cost advantages. This has enabled us to turn around the financial performance of the airline in a difficult and highly competitive environment,” said Borghetti.
“Today’s results confirm we have changed the competitive landscape in Australian aviation and we are now ready for the next phase of our development,” he added.