Virgin Australia on Friday posted a 37 per cent fall in second-quarter underlying earnings before taxes as tough conditions persisted in the domestic aviation market.
Australia's second-biggest airline reported an underlying profit before tax of $45.9 million for the quarter ended December 30, compared with an underlying profit before tax of $73 million a year earlier, in a trading update to the ASX.
On a statutory basis, including restructuring charges associated with a cost-savings program, it reported a profit before taxes of $13.1 million.
The second quarter is typically the most profitable of the year for the airline.
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Virgin will report first-half results later this month. The figure released on Friday indicates underlying earnings of $42.3 million before tax, given it lost $3.6 million in the first quarter.
Virgin in November said it would "actively manage" capacity due to subdued conditions in the domestic market, where it competes against Qantas Airways.
Virgin's domestic capacity rose by 1.6 per cent in the quarter ended December 31, but it cut the number of flights by 5 per cent as it removed E190 aircraft from its fleet. That meant some flights had been switched to larger Boeing 737 aircraft.
The airline did not comment on the performance of its international division.
Reuters