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Virgin's profit falls by 56%

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AAP

2013-02-26

Virgin Australia's first half profit has slumped by 56 per cent but it expects to improve its underlying performance despite challenging economic conditions.

The airline made a net profit of $23 million in the six months to December 31, down from $51.8 million in the previous corresponding period.

The difference was mainly the result of Qantas' industrial dispute in the previous corresponding period, which benefited Virgin.

Virgin on Tuesday also said the carbon tax had a $24.4 million impact on its profit in the six months to December.

The company's underlying profit before tax was $61 million in the six months to December, down from $96.1 million in the previous corresponding period.

Virgin maintained its forecast of a full year underlying profit before tax being higher than the previous year's $82.5 million.

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