27 Feb 2013

Virgin Australia profit down 56%

1:34 pm on 27 February 2013

Half-year profits for Virgin Australia have nosedived, due to difficult operating and economic conditions and the introduction of the carbon tax.

First-half profit dropped 56% compared with the same time last financial year, to $A23 million.

However, underlying profit before tax, came in at $A61 million.

Virgin said it was unable to recover the cost of the carbon tax, because of aggressive competition in the market.

Shares fell more than 4%.

Virgin said on Tuesday this year's result looked worse because the previous year's result was boosted by passengers switching to Virgin during the Qantas grounding.