Etihad backed Virgin Australia posted $185 million in annual losses last month.

The results were the fifth consecutive annual loss by Australia’s second-biggest carrier, in which Etihad has a 21 percent stake.

CEO John Borghetti says that the losses, a 17.6 percent improvement year on year, indicate that the airline is “on the right track” and making progress toward its turnaround plan announced three years ago.

The results were better than analysts expected and do provide a glimmer of hope: the airline posted positive free cash flows for the first time in five years. It has also reduced its debt liability by $300 million.