Virgin Australia has achieved a net profit after tax of $129 million for the last financial year.
👉 Background: In April 2020, Virgin Australia entered voluntary administration. But then, seven months later, Virgin Australia became the first major Australian airline in history to exit voluntary administration.
👉 What happened: Now, Virgin Australia has achieved a net profit after tax of $129 million for the last financial year... and a whopping $5 billion in revenue - up 124% from last year. And this is Virgin Australia's first profit in 11 years.
👉 What else: And while they plan to hit the public markets via the ASX at some point, they need to show consistent profitability to really prove themselves first.
💡Achieving profitability is one thing, but sustaining it is another game altogether.
💡Virgin Australia needs to show its investors (and itself) that it can grow sustainably and profitably. That means carefully managing their costs and growing their revenue streams over the coming years.
💡And Virgin Australia's investors are weary. Virgin Australia was valued at $3 billion in 2010 and crash-landed to a market valuation of just $300 million by 2020. And, this is why Virgin Australia is in no rush to re-list on the stock exchange.
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