Virgin Australia narrows half-year losses

Australian carrier Virgin on Thursday said its first half net loss narrowed to Aus$47.8 million (US$37.3 million) on the back of cost-cutting and slumping oil prices.
The result for the six months to December 31 compared to an Aus$74.3 million loss in the previous corresponding period.
Revenue climbed six percent to Aus$2.38 billion from a year earlier with the country's second-biggest carrier after Qantas crediting a five-year plan to save Aus$1.0 billion for the "significant improvement".
"This has been driven primarily by the group's continued progress in driving yield growth in the domestic market and the disciplined execution of our five-year $1 billion cost reduction programme," said chief executive John Borghetti.
"The group has succeeded in driving domestic yield growth despite ongoing subdued consumer sentiment which continues to impact overall demand."
Virgin Australia, which is majority owned by Singapore Airlines, Air New Zealand and Etihad, noted that it benefitted from weak oil prices and expected this to be reflected further in second half results.
But the performance of its international business was impacted by increased competitive pressure in key international markets.
"Virgin Australia Group will be implementing a series of initiatives to improve the performance of this business," said Borghetti, without giving details.
The airline declined to provide any full-year guidance due to "current market conditions" but said it expected an improved performance in the second half of the financial year.