Virgin Australia Holdings Limited (ASX: VAH) Reports Financial Results for Full Year Ended 30 June 2

• Group Underlying EBIT of $210.6 million - an improvement of $144.7 million on FY15
• Group Underlying Profit Before Tax of $41.0 million - an improvement of $90.1 million on FY15
• Group Statutory Loss After Tax of $224.7 million - impacted by $440.5 million in pre-tax restructuring charges, primarily related to fleet simplification under the Better Business program and other efficiency activities
• Group revenue of $5,021.0 million - growth of 5.7 per cent on FY15
• Group CASK (excl. fuel, FX and VFF) declined by 1.9 per cent on FY15
• Total cash balance of $1,123.8 million, excluding proceeds of $852 million entitlement offer to be received in August 2016
• Financial Leverage improved by 11.9 per cent from 5.9x to 5.2x as at 30 June 2016, with further improvement to 4.1x when adjusted for entitlement offer, top-up placement and repayment of shareholder loan facility

Virgin Australia Group Highlights

• Virgin Australia Domestic - Underlying EBIT growth of 45.8 per cent on FY15 with strong improvement in key financial metrics of RASK, Yield and Underlying EBIT Margin
• Virgin Australia International5 - almost 30 per cent improvement in Underlying EBIT and on track for profitability by the end of FY17
• Tigerair Australia6 - first ever full year profit, one year ahead of target
• Velocity - revenue up 37.4 per cent and membership growth of 20 per cent on FY15
• Decisive action taken to build a stronger business:
• Optimisation of balance sheet, improvement in liquidity and reduction of debt through capital structure review and subsequent equity raising
• Strong focus on lowering cost base through existing efficiency activities and implementation of Better Business program of capital and operational efficiency initiatives. The Group is targeting net free cash flow savings increasing to $300 million per annum (annualised run rate) by the end of FY19
• Development of new revenue opportunities including proposed strategic alliance with HNA to gain direct access to the Chinese travel market7