Virgin Australia has posted its first profit in 11 years, with a net profit of $129 million in FY23, a major turnaround from the previous year’s loss of $386.7 million.
The carrier’s change in fortune was driven by a 124 per cent year-on-year increase in revenue to $5 billion driven by surging demand in both leisure and SME travel.
“We have a long-term commitment to transformations and are only part-way through this multi-year journey. By creating a systemically 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,” Virgin CEO Jayne Hrdlicka said.
“Our investment in frontline transformation continues, and is designed to boost capability, customer experience and operational efficiency. Our recent announcement of an $110 million cabin upgrade, arrival of the first of our new 737-8 aircraft, market leading baggage tracking app and Rapid Rebook technology launch all help us to create experiences our guests love.”
Virgin’s loyalty business Velocity also saw a 68 per cent increase in revenue to $330 million following a boost in membership numbers that saw it reach a record 11.5 million members in FY23.
Virgin CFO Race Strauss said the airline is “now in a very strong capital position”.
“Our transformation plan is well underway and has set up the business for the future,” he said.