Virgin Australia (ASX:VAH) has announced an underlying loss of $3.7 million for the 2017 financial year, which is a detonation from FY16’s $41 million underlying net profit before tax.
The 2017 financial year performance was impacted by several factors, such as stalling domestic trading conditions and challenges on fleet simplification.
In good news though, it also saw a drop in net debt and financial leverage, while its free cash flow and total cash increased.
Meantime, the global brand best known for its airline fleet saw a rise in group revenue to $5.05 billion, a gain of $26 million from the FY2016.
However, Virgin’s Domestic underlying EBIT fell in FY17 to $92.9 million from $162 million in the prior financial year. For its international business, its EBIT rebounded to $500,000, recovering from FY16’s negative EBIT of $48.8 million.
Shares in Virgin Australia (ASX:VAH) are trading 5.71 per cent higher to 18.5 cents.