Asset reviews counter Virgin’s best pre-tax profit in 10 years.
Virgin Australia has revealed a statutory loss after tax of $653.3 million in the 2017/18 financial year, despite achieving its best pre-tax profit in 10 years.
The carrier says its result was impacted by a review of group asset values, resulting in $451.9 million in deferred tax assets being recognised and a $120.8 million impairment of the assets of Virgin Australia International.
“While these adjustments have impacted our statutory result for the year, they are non-cash and have no impact on the fundamentals of the group’s underlying business,” said Virgin Australia Group ceo and md John Borghetti.
“We are confident in the performance of the group’s underlying business and that long-term benefits from our growth plans will be delivered,” he said.
The group’s underlying profit before tax was $109.6 million, an increase of $113.3 million on the previous year and the highest in a decade.
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