PERFECT STORM HITS VIRGIN AS COMPANY POSTS WEAKEST QUARTER IN HISTORY

Written on the 18 May 2017 by Business News Australia

PERFECT STORM HITS VIRGIN AS COMPANY POSTS WEAKEST QUARTER IN HISTORY

OFF THE back one of the most severe weather events to hit Queensland in the past decade, Virgin Australia (ASX: VAH) has posted its weakest quarterly result to date.

Virgin has reported a statutory loss of $69 million for 3Q17, which amounts to a total statutory loss of $90.6 million for the nine months to 31 March 2017.

In a release to the market, Virgin said its performance during "what is historically the weakest quarter" was not only heavily impacted by Cyclone Debbie, but also by costs associated with its fleet simplification program, the effect of US-dollar fluctuations and tough domestic trading conditions.

According to the release, the one-off revenue impact of Tigerair Australia withdrawing its Bali operations also took its toll on the airline.

Even though it's been a turbulent period, Virgin still managed to reduce its total debt facility by more than $200 million in the last quarter.

It has also made progress toward its three-year better business initiative, which includes the offloading of its Embraer 190, ATR 72-500 and ATR 72-600 planes to simplify its fleet.

Virgin doesn't expect a repeat performance of its disastrous third quarter as it closes out the full year. It is forecasting an underlying performance lift in 4Q17.

Never miss a story: Sign up to Business News Australia's free news updates.

Follow us on Twitter, Facebook, LinkedIn and Instagram

 


 


Author: Business News Australia

Latest News

FORMER MFS EXECUTIVES HIT WITH DISQUALIFICATIONS AND MASSIVE FINES FOR MISAPPROPRIATING FUNDS

FIVE key players involved in an investment company that collapsed in 2008 owing $2.5 billion have been ordered to ...

SURFSTITCH BATTLING FOR SURVIVAL

QUEENSLAND based online retailer SurfStitch Group has gone into a voluntary trading halt for three months after it wa...

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

THE AMBITIOUS PLAN TO TURN A COLLAPSED FRANCHISE INTO AN EXPANDING BUSINESS

AUSTRALIA'S newest master franchise is set to launch in October as a commercial cleaning operation, resurrecte...

Related News

STARTUP SUCCESS BOILS DOWN TO PERSONALITY, SAYS EXPERT

THOSE who own startups will know that there are many essential qualities of a good entrepreneur; their tenacity, fina...

SLATER AND GORDON TAKES SPOTLESS TO COURT

SPOTLESS Group (ASX: SPO) has been hit by a class action launched by Slater and Gordon (ASX: SGH) in the Federal C...

TOPSHOP GOES INTO ADMINISTRATION AMID VOLATILE RETAIL MARKET

TOPSHOP has become the latest in a string of retailers blasted by the volatile retail market, as the iconic fashio...

SIGMA'S SHARE PRICE TAKES A BATTERING AS IT LAUNCHES LEGAL ACTION OVER SUPPLY DEAL

SIGMA Healthcare (ASX: SIG) has taken the MyChemist and Chemist Warehouse chains to court to demand they continue to ...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter