The no-frills carrier slashed its earnings outlook in half in late May to between 20 and 40 million dollars, following renewed economic turbulence and a slump in consumer confidence.
Virgin said the Asia-Pacific region showed its first signs of recovery in the three months to June, offsetting poor market conditions in the preceding three quarters, but warned that conditions remained shaky.
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"Conditions continue to be volatile and competitive activity continues to put downward pressure on yields," Virgin said in a statement to the Australian Stock Exchange.
"The soft growth seen at the end of the fiscal year, at this stage, is not sufficient to suggest a consistent across-the-board improvement in conditions."
Revenues increased by 13 percent to 2.98 billion dollars, buoyed by a solid performance on Virgin's domestic routes.
Chief John Borghetti said the result "demonstrates that Virgin Blue's domestic business has the capability to ride through market and economic volatility, and remain well positioned to extend its reach in key markets."
To that end, Borghetti announced a codesharing partnership with Etihad which will see Virgin's long-haul international arm V Australia launch three weekly Sydney to Abu Dhabi services from 2011. It would drop non-profiting services to Fiji, South Africa and Phuket.
"Together with our proposed alliances with Delta Air Lines and Air New Zealand the Virgin Blue network will seamlessly extend its reach to many more overseas destinations with little capital expenditure," Borghetti said.
Domestically, Virgin would also bring two Airbus A330-200 aircraft online to boost services along the busy east coast corridor and popular cross-continent route to the west coast city of Perth, he added.
The changes were aimed at capitalising on the increasing popularity of budget flight options with corporate and government groups, he said.
Virgin Blue, which is part-owned by Richard Branson's Virgin group and is Australia's second-largest airline, has not returned a dividend since 2008.
Its shares were 3.57 percent higher at 29 cents following the result in a broadly stronger market.
