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Virgin Australia profit falls into red for 2013

Virgin Australia (ASX: VAH) reported full-year 2012 earnings Friday, pushing up its top line slightly as its bottom line inched into the red. Total revenue clocked in at $4.02 billion this year, up from 2012’s $3.92 billion in sales. But the airline made less from more, reporting a statuary after-tax net loss of $98.1 million.

Fortunately for investors, this bad news isn’t exactly news. Losses were expected to clock in between $95 million to $110 million, and the company’s $35.2 million pre-tax loss also fell within guidance. Reasons for the company’s tough year were varied – tough economic times, increasing competition, restructuring/transformation costs, and the controversial carbon tax all got shout-outs in Virgin’s final report.

“While the financial results clearly did not meet our initial expectations, the 2013 financial year was a pivotal year for Virgin Australia, in which we completed our major restructuring and transformation program and reshaped the competitive landscape of the Australian aviation market,” said CEO John Borghetti in a statement.

Among the company’s operational accomplishments, Borghetti noted new growing market shares, an improved ticketing system, and streamlined administrative costs. Although Virgin’s outlook on next year seems optimistic, the airline held off on any 2014 guidance, citing “the uncertain economic environment.”

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Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

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