Virgin Australia's net profit for the fiscal year swung to A$22.8 million ($23.7 million), from a net loss of A$67.8 million from a year ago.
This was an increase of A$90.6 million, compared with the same period last year.
Revenue for the year ended 30 June 2012 rose by 19.8% to A$3.9 billion, compared with A$3.3 billion in FY2011.
The airline's operating expenses rose by 16% to A$3.8 billion, compared with A$3.3 billion in the last fiscal year. Aircraft fuel costs for the year increased by 15.2% to A$1.04 billion from A$906 million.
Virgin Australia's cash and cash equivalents amounted to A$803 million at the end of the financial period.
"Our progress in attracting higher yielding corporate and government customers has been a key driver of our improved profitability," says John Borghetti, chief executive of Virgin Australia.