Virgin Australia, Australia's second largest airline, returned to profit as revenue jumped almost a fifth for the year as it increased its share of the lucrative business travel market.

The carrier posted a A$22.8 million ($29.2 million) annual net profit, compared with a A$68m loss a year earlier, due to increased return on fares from domestic flights.

The airline, though, declined to give earnings guidance for the new financial year because of an "uncertain economic environment".

Days after arch-rival Qantas slumped to a A$244m full-year loss, Virgin said a driver of its return to profitability had been its ability to snare high fare-paying corporate and business travellers.

Virgin's revenue rose 20 per cent to A$3.9 billion. Virgin said corporate and business traffic now makes up 20 per cent of its domestic revenue.  

Virgin shares have easily outperformed Qantas stock in 2012, rising 68 per cent while Qantas has dropped 19 per cent, prior to today. Those movements compare with a 7.1 per cent advance for the overall ASX200 benchmark share index.

- © Fairfax NZ News