Virgin Australia returns to profit

Australian budget carrier Virgin posted a full-year profit of Aus$22.8 million (US$23.6 million) Tuesday, climbing back into the black after picking up business-class passengers from rival Qantas. Virgin, Australia's second-biggest airline, said its net profit in the year to June 30 was up from a Aus$67.8 million loss in the previous period. This compared with Qantas' net loss of Aus$244 million announced last week, a half-billion-dollar reverse from the 12 months before. "Our progress in attracting higher yielding corporate and government customers has been a key driver of our improved profitability," Virgin chief executive John Borghetti said in a statement. "This segment now makes up 20 percent of our domestic revenue and, encouragingly, over the last three months we have averaged above this level." Revenue increased 19.8 percent to Aus$3.9 billion and Borghetti said the bottom line benefitted from increased codeshare returns from its international alliances, including with Singapore Airlines and Etihad. Despite posting a profit, Virgin did not declare any dividend for shareholders and said the uncertain economic environment meant the company could not provide guidance for the current financial year. "In light of the continuing uncertain economic environment and the need to support our current and future strategic initiatives, we will not declare a dividend," Borghetti said. Virgin shares were down 3.75 percent at 46 cents in early afternoon trade.