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Virgin Australia Holdings Ltd posted a net loss of A$83.7 million ($75 million) for the second half of 2013 on Friday, a day after its larger rival Qantas posted record losses of $225 million.
Revenues rose almost 6 per cent to A$ 2.2 billion.
The airline’s Chief Executive John Borghetti said weaker economic conditions, a growth in capacity and the Government’s carbon tax led to the fall.
“The results reflects the tough trading conditions across the entire industry,” he said.
Virgin Australia’s results were in line with predictions by analysts surveyed by financial news agency Bloomberg.
Australia’s aviation industry posted an overall loss in the second half of 2013 for the first time in two decades.
Virgin Australia has been moving to give its customers optional add-ons to complement its no-frills service, in a bid to compete with the higher-end offering of Qantas, the market leader in the region.
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