LONDON – Virgin Australia has announced that it aims to be back to profitability by June 2023 as the airline begins the concluding stages of its restructuring.
It is understood that the carrier has been able to make savings of around A$300 million to achieve this, as well as expand its revenue options through additional aircraft acquisition.
CEO Jayne Hrdlicka said the following on the progress that has been made by the carrier:
“Confidence in our business strength and operation is at an all-time high”.
“We have a strong balance sheet, some of the best management in the industry working in our ongoing business transformation, and we are well advanced in returning to profitability this financial year.”
A Long Process…
Hrdlicka began the transformation process back in November 2020, which will be two years next month. Whilst fighting off the effects of COVID-19, she has placed investment and growth into the airline.
For example, she has grown the fleet of the carrier by 60% and has invested around A$300 million in digital and IT services, which includes the introduction of the Business Flyer program.
As for the fleet, they currently have four Boeing 737-700s and 75 737-800 aircraft, with four 737 MAXs on the way and due for delivery in February 2023.
It is also understood that another four MAXs will be delivered in the second half of next year, too, hinting at the fact that the airline is transitioning from restructuring into potential growth.
Through COVID regulations being loosened, the airline has been able to restart certain international services, more notably in New Zealand, over the last 12 months.
A September of Inauguration…
The more notable announcement that came from the carrier was last month when they inaugurated their codesharing arrangement with Qatar Airways.
This deal was announced back in May 2022, with members of the Privilege Club being able to earn Avios & QPoints on flights operated by the Australian carrier.
For Velocity Frequent Flyer Members, Velocity Points and Status Credits can be acquired from flights operated by Qatar Airways.
Hrdlicka said the following on this at the time:
“Today is an incredibly exciting day for Virgin Australia and our loyal Velocity Frequent Flyer members with Qatar Airways officially joining the Virgin Australia family.
“We are continuing to deliver on our promise to grow our international network, and from today, our guests will have direct access to over 150 destinations worldwide on the Qatar Airways network, including more access to the Middle East, Europe, and Africa than we have ever offered in the history of our airline.”
“For our more than 10.8 million Velocity members, they’ll now be able to earn and redeem Velocity Points to over 500 destinations globally when traveling with Virgin Australia, Qatar Airways, and our long list of renowned international airline partners.”
“Eligible Velocity members will also receive a host of premium benefits when traveling with Qatar Airways, including access to the lounge and priority check-in and boarding.”
“The partnership will also allow Virgin Australia to show our famous hospitality and all the incredible scenery and unique experiences we have in Australia when Qatar Airways’ customers and Privilege Club members fly on our network”.
Either way, it does appear that Virgin Australia is slowly heading to the straight and narrow, with 2023 offering an opportunity to return to profitability and further growth.