Virgin Blue has managed to sound an optimistic chime throughout the travel industry, one of the hardest hit sectors during recession, after lifting its before-tax earnings forecasts to as much as $110 Million for the complete fiscal year.

In an official statement that was released last night, the airlines operator said that it now expects net earnings pre-tax to fall between $80 Million and $110 Million for a complete year up-to June 30, a substantial rise when compared to the loss of $93 Million which was posted for the previous year.

Previously, Virgin Blue had shared its expectations for this financial year as "return to profitability".

Despite the optimism, the group has been quick to take on a cautious note. "Concerns remain around the pace of the global economic recovery and the continuing volatility in domestic and international markets. In particular, seasonality and competitive activity in the domestic market will see pressure on yields for the remainder of this year", Virgin Blue says.