Virgin Australia delivers second consecutive year of profitability
Virgin Australia has reported its second full year of profitability, attributing its full year 2024 success to measures including its investment in “new, more fuel efficient-aircraft” (such as six new Boeing MAX-8s) and “first-to-market customer innovations”.
The airline reported a group revenue of $5.4 billion for the full year 2024, an increase of 6.8% over 2023. Earnings before interest and tax stood at $519 million, an increase of 18.2% year-on-year, and marking the second consecutive positive year since Virgin Atlantic returned to profitability for the first time in 11 years.
“[2024] is our second consecutive year of after-tax profit,” clarified Virgin Australia chief executive officer Jane Hrdlicka. “This strong performance demonstrates the ongoing success of our transformation journey, despite what has been a challenging year for our industry”.
The ongoing success builds on the airline’s transformation plan, initiated four years ago, with Virgin Australia citing revenue management, ancillary revenue, digital channels, fleet reconfiguration, operations productivity and ongoing cost reduction as key areas for attention. “There is a well-defined plan for continued transformation which will deliver further customer, team and shareholder benefits”.
Delivery of six new 787 MAX 8 aircraft are also at the centre of the carrier’s transformation pan, alongside 14 737-800 aircraft “reconfigured with latest-generation interiors”.
Virgin Australia chief financial officer Race Strauss concluded that “in FY25, Virgin Australia will build on this momentum continuing its focus on ensuring the execution of transformation initiatives which will be crucial to mitigating the ongoing impact of inflation”.
