(Adds details, background on new CEO and domestic business)
Feb 13 (Reuters) - Virgin Australia Holdings Ltd (VAH) posted a 37.1 percent rise in first-half underlying pre-tax profit on Wednesday, which the airline says is its best result since 2008, as the strength of its domestic business and forward bookings helped overcome higher fuel costs.
Australia's No. 2 airline reported underlying pre-tax profit, its most closely watched measure, of A$112.3 million ($79.69 million) for the six months ended Dec. 31, compared with A$81.9 million a year ago.
The profit exceeded its earlier guidance of an underlying pre-tax profit of at least A$100 million, despite A$88.2 million in fuel and foreign exchange headwinds during the half.
Vigin's domestic business, which accounts for nearly two-thirds of its revenue, grew 10.3 percent, thanks to a rise in passenger numbers, the airline said.
The Australian domestic aviation market is largely a duopoly between Virgin and Qantas Airways Ltd (QAN) , both of which have cut capacity, resulting in higher fares and strong domestic profits.
Virgin has been looking to build on recent improvements in its balance sheet and domestic business and to turn around its international and low-cost divisions.
The airline said it expects revenue in the third quarter to grow by at least 7 percent from a year ago.
The company announced last week that former DP World Australia boss Paul Scurrah would replace long-serving Chief Executive John Borghetti from March 25.
Challenges for Scurrah will include managing a complicated shareholder register dominated by strategic investors including Singapore Airlines Ltd SIAL.SI , Etihad Airways, China's Nanshan Group NANSH.UL , debt-saddled conglomerate HNA Group and Richard Branson's Virgin Group.
On a statutory basis, including one-off gains and losses, profit rose to A$73.8 million, a sizable jump from A$4.4 million a year ago. ($1 = 1.4092 Australian dollars)
