VIRGIN NARROWS LOSS WITH COST CUTS

Written on the 29 July 2015

VIRGIN NARROWS LOSS WITH COST CUTS

VIRGIN Australia Holdings (ASX:VAH) has tapered its underlying loss before tax to $36.9 million in the fourth quarter, as Tigerair's performance starts to take off.

The result represents a $46.2 million improvement since the previous corresponding period, or $72 million including Tigerair on a like-for-like basis.

For the financial year-to-date ending 30 June 2015, the underlying loss before tax sits at $49 million a $213 million improvement over the previous year.

Tigerair recorded a pre-tax underlying loss of $9.8 million in the fourth quarter, compared to $25.8 million previously.

The airline incurred restructuring and transaction costs and the impact of ineffective hedges of $24.9 million.

Virgin Australia Group CFO Sankar Narayan says the company's cost reduction program continues to deliver positive results.

"The result represents a significant year-on-year improvement in performance for the seasonally weaker June quarter and we expect to see a continued positive trajectory," Narayan says.

"The key highlights in this result have been our performance on non-fuel costs, success in attracting high yielding market segments and the improved performance of Tigerair Australia."

He says underlying cost per available seat kilometre continues to decrease, excluding fuel costs.

Virgin's fourth quarter group yield and domestic yield were also up compared to the previous quarter.

 


Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter