SYDNEY (Reuters) - Virgin Australia Holdings Ltd (AX:VAH) on Friday posted a 37 percent 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 A$45.9 million (28 million pounds) for the quarter ended Dec. 30, compared with an underlying profit before tax of A$73 million a year earlier.
On a statutory basis, including restructuring charges associated with a cost-savings programme, it reported a profit before taxes of A$13.1 million.
The second quarter is typically the most profitable of the year for the airline. Virgin will report first-half results later this month, but the figure released on Friday indicates underlying earnings of A$42.3 million before tax given it lost $A3.6 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 (AX:QAN).
Virgin's domestic capacity rose by 1.6 percent in the quarter ended Dec. 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 (NYSE:BA) 737 aircraft.
The airline did not comment on the performance of its international division.