Revenue for the 12 months to June 30 rose 7.5 per cent to $5.83 billion despite a “challenging trading environment” in the second half of the financial year.

The airline, which recorded its seventh consecutive annual loss on Wednesday, said the job cuts were aimed at saving $75 million in costs by the end of the 2020 financial year.

The company said it would more closely integrate the functions of Virgin Australia Airlines, Virgin Australia Regional Airlines and Tigerair Australia.

“There is no doubt that we are operating in a tough economic climate with high fuel, a low Australian dollar and subdued trading conditions,” Virgin Australia chief executive Paul Scurrah said.

“Decisions which have a direct impact on people’s livelihoods are never made lightly and I regret the need to reduce the size of our workforce so quickly,” he said.

“However, today’s financial results tell us loud and clear that we need to reduce costs.”

The company on Wednesday also announced the appointment of Keith Neate as its new chief financial officer, starting on September 2.

Virgin, which did not declare a final dividend, noted that there had been a “continuation of softer conditions” at the start of July.

Virgin shares were worth 16.5 cents before the start of trade on Wednesday.

-AAP

Want to comment?

Send us an email, making it clear which story you’re commenting on and including your full name (required for publication) and phone number (only for verification purposes). Please put “Reader views” in the subject.

We’ll publish the best comments in a regular “Reader Views” post. Your comments can be brief, or we can accept up to 350 words, or thereabouts.

InDaily has changed the way we receive comments. Go here for an explanation.