Feb 27 (Reuters) – Virgin Australia posted a 20.7% rise in half-year underlying profit on Friday, beating estimates as strong customer demand and benefits from its transformation program lifted the bottom line.
Australia’s second-largest airline reported underlying net profit after tax of A$278.7 million ($198.07 million) for the six months ended December 31, beating Visible Alpha’s consensus estimate of A$261.1 million and up from A$230.9 million a year earlier.
Strong domestic demand during the holiday season lifted the company’s airline business, while progress in the group’s transformation program delivered more than A$200 million in gross benefits.
Launched after Virgin Australia exited voluntary administration, the program aims to modernise outdated technology and systems, streamline processes, reorganise the business for efficiency and simplify its fleet.
($1 = 1.4071 Australian dollars)
(Reporting by Sneha Kumar and Nikita Maria Jino in Bengaluru; Editing by Tasim Zahid)
Comments