Virgin has attributed some of this to Cyclone Debbie and the severe weather in Queensland along with the revenue impact of the withdrawal of Tigerair’s Australasia’s Bali operations.
A subdued domestic market and currency fluctuations on US-dollar denominated debt also contributed to the result.
Virgin said it was successfully implementing its strategy of reducing its debt load.
It said net debt had been cut by $200 million with accelerated debt repayments of $169 million during the first half of 2017.
As of 31 March 2017, Virgin’s net debt had reduced by $627 million.
Based on current market conditions, the group said it expected an improvement in its underlying performance in the fourth quarter of 2017 financial year.