Virgin Australia posts $225m loss

VIRGIN Australia has posted a full year net loss of $224.7 million, but says the costs will be outweighed by “significant, ongoing future savings”.

Virgin Australia has taken a bottom-line hit to overhaul its business.

VIRGIN Australia has posted a full year net loss of $224.7 million, after taking charges related to fleet simplification and other efficiency activities.

The airline says underlying profit before tax for the year ended June 30 rose to $41 million, an improvement on the previous year’s $49 million loss.

Australia’s second biggest carrier had flagged the expected numbers last month, after posting a net loss of $228 million for the final three months of the 2015/16 fiscal year.

“While there are costs associated with implementing these activities and initiatives, these are outweighed by the significant, ongoing future savings that will be delivered,” chief executive John Borghetti said.

Originally published as Virgin Australia posts $225m loss