Corporate travel growth lends profit for Virgin Australia
Wednesday, August 29, 2012
A recent article by The Associated Press reported that Virgin Australia Holdings saw a net profit of 22.8 Australian dollars ($23.6 million U.S. dollar) for the year returning the airline to profitability and is contributed largely to growth in the corporate travel sector.
Virgin Australia Holdings is the second largest airline in Australia, but the nation's largest airline, Qantas Airways, reported a AU$245 million annual loss in profits.
Business travelers can pat themselves on the back for Virgin Australia's success. The airline's chief executive John Borghetti said in a statement, "Our progress in attracting higher yielding corporate and government customers has been a key driver of our improved profitability. This segment now makes up 20 percent of our domestic revenue and encouragingly, over the last three months, we have averaged above this level."
One of the ways that Virgin Australia was able to accomplish its gains was through increasing the frequency on some of their flights that are key corporate routes. Business travelers could expect the airline's corporate accommodations to continue to expand due to its success and can look to take advantage of more flight options.
The Sydney Morning Herald said in a recent article that Virgin Australia's profits is particularly "robust" when you compare it with last year's loss that totaled AU$67.8 million.