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.
