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Virgin Australia whittles back annual loss with cost cuts
[SYDNEY] Australian airline Virgin Australia Holdings Ltd said on Wednesday that its annual net loss narrowed as it cut costs by limiting its seat capacity to bolster demand and drive up fares.
The carrier, due to announce detailed full-year results on Aug 7, said in a statement it made a loss in the 12 months ended June 30 of A$93.8 million (S$94 million), compared with a loss of A$261.8 million a year ago.
Along with its larger rival Qantas Airways Ltd, Virgin Australia recently ended a price war which had resulted in wide losses for both firms in recent years. The companies now say they are focused on improving profitability.
Virgin Australia said its Tigerair Australia low-cost unit narrowed its loss for the quarter ended June 30 to A$9.8 million from A$25.8 million in the same period a year earlier.
Shares of Virgin Australia rose 0.6 per cent while the broader market rose 0.9 per cent.