Virgin Australia has reported an 81% increase in corporate and government revenue in the half year to December 31 2011, bringing the airline’s target of doubling its share of the corporate market by the end of 2012 well within its grasp.
The airline reported net profit after tax of $51.8 million for the half year, a 118% increase on the corresponding period in 2010.
Chief executive John Borghetti said that the results demonstrated the success of the airline’s repositioning strategy, and put the airline’s financial position “ahead of schedule.”
“We have made significant progress in diversifying our revenue sources, with an 81% increase in corporate and government revenue, an increase of more than 100% in interline and codeshare revenue on our domestic network and with strong performance from our recently launched regional turboprop operations,” he said.
The corporate and government market now makes up 17% of total revenue, Borghetti revealed, up from 13% in the 2011 financial year.
The airline secured 35 new accounts over the half and lost none, with many increasing spend, he claimed, adding that early indications following the implementation of its business class product across its domestic network on January 18, had been “very positive.”
Borghetti credited its Game Change Program strategy with enabling Virgin Australia to withstand pressure from high fuel prices and an “uncertain” economic environment.
He announced a new business class product for its Embraer 190 aircraft which operate on routes such as Canberra-Sydney.
