Virgin Australia Holdings is forecasting higher revenues for the current quarter after posting six-monthly pre-tax profits of A$112.3 million (to December 31), its best half-year profit for 10 years.

Virgin's domestic business, which accounts for about 65 per cent of its sales, grew 10.3 per cent thanks largely to higher fares, the airline said.

 

The airline also says it expects revenue in the third quarter to grow by at least seven per cent from a year ago.