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

TECHNOLOGYONE SAYS IT WILL SUE BRISBANE CITY COUNCIL FOR $50M IF IT TERMINATES CONTRACT

ENTERPRISE software company TechnologyOne (ASX: TNE) has threatened to sue Brisbane City Council (BCC) for more than ...

WESTPAC LOOKING TO SELL HASTINGS TO CHARTER HALL

Westpac Group (ASX: WBC) has entered discussions with property investment group Charter Hall (ASX: CHC) to sell Ha...

THE CYBER SECURITY FIRM THAT HAS MELBOURNE AND SYDNEY BATTLING FOR ITS BUSINESS

ISRAELI cyber security firm Votiro will decide where to set up shop in Australia in the next few weeks, with both ...

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

Related News

TECHNOLOGYONE SAYS IT WILL SUE BRISBANE CITY COUNCIL FOR $50M IF IT TERMINATES CONTRACT

ENTERPRISE software company TechnologyOne (ASX: TNE) has threatened to sue Brisbane City Council (BCC) for more than ...

WESTPAC LOOKING TO SELL HASTINGS TO CHARTER HALL

Westpac Group (ASX: WBC) has entered discussions with property investment group Charter Hall (ASX: CHC) to sell Ha...

THE CYBER SECURITY FIRM THAT HAS MELBOURNE AND SYDNEY BATTLING FOR ITS BUSINESS

ISRAELI cyber security firm Votiro will decide where to set up shop in Australia in the next few weeks, with both ...

IF YOU LOSE YOUR MOJO, YOU LOSE YOUR BUSINESS: GLEN RICHARDS

HE'S one of the "sharks" on the hit show Shark Tank and Dr Glen Richards deals with startups and sca...

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