Virgin Blue today reported a $101.4M net loss after tax for the six months to 31 December, with CEO Brett Godfrey saying the result was a 'creditable performance among airlines globally, despite an extremely tough operating environment.'

The carrier said its underlying net profit was $60M but the figure was affected by a 'non-recurring $60.6M after tax investment in V Australia' and an $80.8M expense relating to ineffective fuel and currency hedges.

Total revenue for the six months was $1.35B, up 11.5% and revenue passenger kilometre rose 12%, while the carrier’s overall load factor fell three points to 80.2%.

The carrier said it’s escalated its program to insulate itself against possible further falls in domestic demand, cutting capacity and staff with a further $40M in cost savings planned.