Funny how the press 2 months ago were singing JB's song
Virgin Australia is flying high as the nation's second biggest airline benefits from 12 year-low oil prices and higher domestic airfares.
Virgin swung to a net profit of $45.7 million for the six months to December 31, with a $33.8 million benefit in the fall in oil prices offsetting a $19.2 million impact from the Bali volcanic flight disruptions in November.
The result was a major turnaround from $53.1 million net loss suffered a year earlier.
Virgin expects to book a similar gain from further oil price falls in the second half of fiscal 2016, chief executive John Borghetti said.
Virgin also remains on track to exceed its target of $1.2 billion in cumulative cost savings by the end of the fiscal 2017.
Those savings will include the sale of five Embraer 190s and six of its Embraer 170s, which are currently sub-leased to Delta Air Lines. As a result, Virgin will boast a fleet of 154 aircraft.
Virgin's underlying interim profit before tax jumped sharply to $81.5 million from $10.2 million a year ago, driven by strong revenue from its domestic operations and ongoing improvements at Tigerair.
Virgin Australia profit flying high