SYDNEY - Australia's second largest airline Virgin Australia on Tuesday announced a net profit of 22.8 million AU dollars ($23.61 million) for the 2012 financial year, an improvement of 90.6 million AU dollars on the prior corresponding period.

Virgin Australia Chief Executive Officer John Borghetti said the company's improved financial performance throughout the year showed that its Game Change Program strategy was delivering positive results despite the challenging economic environment and high fuel prices.

"Our progress in attracting higher yielding corporate and government customers has been a key driver of our improved profitability," Borghetti said in a statement.

"This segment now makes up 20 percent of our domestic revenue and, encouragingly, over the last three months we have averaged above this level."

He said the company had also benefited from its increased international alliances.

"Today's results confirm we have changed the competitive landscape in Australian aviation and we are now ready for the next phase of our development," Borghetti said.

Borghetti said the uncertain economic environment meant the company was able to provide clear 2013 financial year guidance at this stage.

Despite the positive result, Virgin has not declared any dividend for its shareholders.