(Adds no privatisation plans, chairwoman and CEO comments)
Feb 28 (Reuters) - Virgin Australia Holdings VAH.AX said on Wednesday it will not go private as it reported first-half underlying profit rose 142.3 percent due to domestic demand from business and leisure flyers.
Australia's second-biggest airline said last November it was considering going private as it swung to profitability in its first quarter from a loss a year previously and forecast continued improvement in the second and third quarters. discussions with the major shareholders, the Board has decided not to privatise the company," Chairwoman Elizabeth Bryan said in a statement on Wednesday.
The airline said it expected an improvement in underlying performance in the second half of fiscal 2018.
It reported an underlying profit before tax of A$102.5 million ($79.80 million) for the six months ended Dec. 31, compared with A$42.3 million last year.
"The improvement was driven by a number of factors including unit revenue and passenger growth, capacity and network optimisation," Chief Executive John Borghetti said.
On a statutory basis, including one-time gains and losses, profit rose to A$4.4 million compared with a A$21.5 million loss a year ago.
Revenue rose 6 percent during the period to A$2.79 billion.
Last week, Virgin's larger rival and Australian flag carrier Qantas QAN.AX beat market expectations to post a record first-half profit, largely thanks to fare hikes bringing strong earnings in its domestic business. domestic fares are at the highest in almost a decade, Australian government figures show.
($1 = 1.2845 Australian dollars)