Australian air fleet Virgin Blue (ASX: VBA) posted a net profit before tax worth $34.3 million.

Virgin Blue Chief Executive Officer and Managing Director, John Borghetti, said, “Achieving a $34 million net profit before tax in the current environment demonstrates that Virgin Blue’s domestic business has the capability to ride through market and economic volatility, and remain well-positioned to extend its reach in key markets.”

Borghetti attributed the statutory profit to the deterioration in the operating environment for other airlines during the fourth quarter. He also said the results are in line with the company's forecast.

The underlying earnings for the financial year stands at $87.2 million before interest and tax, while the the underlying net profit before tax is $31.0 million.

Borghetti boast of the company’s strong Australian domestic short haul business which achieved a 2.7 percent increase in Revenue per Available Seat Kilometre (RASK). He said, “Our short haul business made a credible underlying EBIT of $20 million in the second half of the year. In addition our long haul business has seen improvements, particularly into the US.”

The airliner reported an operating cash flow of $369.2 million and a cash balance of $815 million, up from $476 million. The underlying Cost per Available Seat Kilometre (CASK), excluding fuel drop to 4.9 percent.