Bain Capital-owned Virgin Australia said on Tuesday that the airline returned to a profit for the first time in 11 years for fiscal 2023, buoyed by a strong recovery in travel demand following the COVID-19 pandemic.

The carrier reported a statutory net profit after tax of A$129 million ($82.93 million) for its financial year 2023, in spite of higher fuel prices as it continued to see healthy demand with capacity returning to desirable levels.

Virgin Australia now has a considerably stronger balance sheet with continued significant improvement in its cost base, CFO Race Strauss said in a statement.

The company reported a group revenue of A$5 billion, an increase of 124% from a year earlier.

Airlines globally have posted robust profits in recent months after flights returned to capacity on surging post-pandemic travel demand after the industry slid to a near halt when the spread of COVID-19 kept most carriers within closed borders in early 2020.

($1 = 1.5555 Australian dollars)

(Reporting by Roushni Nair and Nausheen Thusoo in Bengaluru; Editing by Rashmi Aich)