* H1 NPAT A$45.7 mln vs A$53.1 mln loss
* Says expects to post FY net profit after consecutive losses
* Oil prices cut operating costs (Adds Tigerair, fuel, loyalty earnings, share prices)
SYDNEY, Feb 11 (Reuters) - Australian airline Virgin Australia Holdings Ltd VAH.AX on Thursday said it swung to a half-year profit as it cut costs and attracted more big-spending corporate passengers, while it forecast a return to profitability for the full year.
The airline, which competes domestically with Qantas Airways Ltd QAN.AX , posted a net profit of A$45.7 million ($32.4 million) for the six months to Dec. 31, up from a net loss of A$53.1 million in the prior first half.
"All fundamental business metrics are in place for the group to report a profit for the 2016 financial year," Virgin Chief Executive Officer John Borghetti said in a statement, a forecast of improvement over two previous years of net losses.
The two Australian carriers have been curbing spending and refraining from fare cuts to rebuild earnings after a price war saw them rack up billions of dollars of collective losses.
Virgin has also been building up its loyalty scheme, which grew pre-tax earnings to A$70.8 million for the half, from A$45.2 million the previous year.
Budget airline Tigerair, which Virgin bought from Singapore-listed Tiger Airways Holdings Ltd TAHL.SI in 2014, delivered pre-tax earnings of A$13.9 million, up from A$1.6 million, in its best half-yearly result since commencing operations, Virgin said.
Airlines are among the few sectors to benefit from a low oil price, and Virgin said it cut "fuel and oil" expenses 8.6 percent to A$561.1 million in the half year, while revenue rose 11.8 percent to A$2.7 billion.
The company did not declare an interim dividend, as per the prior corresponding period.
Virgin shares rose 4.3 percent on Wednesday while the broader market .AXJO fell. ($1 = 1.4104 Australian dollars)