Dubai: Virgin Australia posted on Thursday an improved first-half year results off the back of stronger domestic operations but the airline’s international woes have worsened.

Australia’s second-largest airline made a statutory loss of 53.1 million Australian dollars (Dh151.7 million) for the six months ending December 31, 2014 compared to a A$74 million loss in the same period a year ago. A loss of A$47.8 million was attributable to the airline. Revenue increased 6 per cent to A$2.38 billion from the same period a year ago.

The Australian financial year starts July 1 and ends June 30.

The airline’s operations in the Australian domestic market made a first-half pretax profit of A$104 million, an improvement on the $26 million it made a year ago. The bulk of its earnings are made in Australia.

But losses in its international operations increased from A$32 million a year ago to A$50 million. The airline cited competition on European and South East Asian routes for the increase.

Virgin Australia predominantly relies on its three airline shareholders, Etihad Airways, Singapore Airlines and Air New Zealand, as well as non-shareholder Delta, to code-share on their international routes.

The airline will improve cabins and reschedule flights to destinations such as Bali, Indonesia to meet customer convenience, Virgin Australia Chief John Borghetti said on a conference call from Sydney.

Borghetti also said other initiatives were planned but declined to divulge them citing commercial reasons. Asked about potential changes to the three-time weekly Sydney-Abu Dhabi service, Borghetti declined to comment.

Will Horton, a senior analyst at CAPA — Centre for Aviation, said by email the “Abu Dhabi service seems weak given limited passenger interest in the service and Virgin’s increasing pivot towards Singapore Airlines.”

Borghetti declined to comment on the number of passengers Etihad fed to Virgin Australia’s domestic network in the first half.

“It’s a very worthwhile partnership,” he said.

Etihad holds a 24.2 per cent stake in Virgin Australia, which they most recently increased last month.

Virgin Australia shares rose 1.053 per cent to 0.48 Australian cents on the Australian Securities Exchange on Thursday.