Virgin Australia Narrows Full Year Loss

Virgin Australia said its annual net loss had narrowed as it cut costs by limiting its seat capacity to bolster demand and drive up fares.

The carrier, due to announce detailed full-year results on August 7, said in a statement it made a loss in the 12 months ended June 30 of AUD$93.8 million (USD$69 million), compared with a loss of AUD$355.6 million a year ago.

Virgin Australia and rival Qantas recently ended a price war which had resulted in wide losses for both firms in recent years. The companies now say they are focused on improving profitability.

Virgin Australia said its Tigerair Australia low-cost unit narrowed its loss for the quarter ended June 30 to AUD$9.8 million from AUD$25.8 million in the same period a year earlier.