VIRGIN POSTS LOSS, REMAINS HOPEFUL

Written on the 4 March 2014

VIRGIN POSTS LOSS, REMAINS HOPEFUL

 IN LIGHT of a challenging environment, Virgin Australia Holdings Limited (ASX: VAH) has reported a statutory loss after tax of $83.7 million for the half year.

VAH claimed its result is largely owing to a combination of low consumer sentiment, economic uncertainty and tough trading and competitive conditions.

CEO John Borghetti says the results reflect the conditions across the entire Australian domestic aviation industry – which saw a first half loss for the first time in 20 years.

However, VAH outperformed its main competitor on growth in total group revenue, domestic yield, international yield and group revenue load factor.

“The industry continues to be impacted by significant capacity growth which occurred during the 2013 financial year, compounded by weak economic conditions and the inability to recover the cost of the Carbon Tax,” says Borghetti.

Regardless, Borghetti remains hopeful for the remainder of the financial year, noting VAH’s further consolidation across key markets and deliverance on key targets.

“We further expanded our regional network (Skywest), worked closely with our joint venture partner Tigerair and enhanced strong partnerships with leading global airlines.

“We also delivered on first-half targets for Velocity Frequent Flyer, global market access and customer experience, and continued to grow our business efficiency program.”

Looking ahead, Borghetti says this program is on track to its $400 million target in cumulative productivity gains for financial year 2015.
Borghetti is focused on the long-term strategy – which includes the five-year Game Change Program – and believes VAH is positioned as an effective competitor in the long-term.

The total VAH cash position stood at $896.6 million, up from $580.5 million at 30 June 2013.


Latest News

SLATER & GORDON AND MAURICE BLACKBURN SHOWDOWN IN BELLAMY'S CLASS ACTION

FIERCE rivals Slater & Gordon (ASX: SGH) and Maurice Blackburn have secured funding for class actions against Bel...

WHY VIDEO IS A "GIVEN" FOR BUSINESS

IN TODAY's digital-driven world, video is king and if used right, it can push a company's brand and brand ...

BRAMBLES TUMBLES AFTER REDUCING GUIDANCE

BRAMBLES (ASX: BXB) will miss its first-half guidance due to cost pressures at its North America business.

The com...

VILLAGE ROADSHOW PARKS HURT BY DREAMWORLD TRAGEDY

QUEENSLAND visitors to Village Roadshow (ASX: VRL) theme parks have declined 12 per cent in the wake of four deaths a...

Related News

CARSALES CEO RETIRES AS NEW COMPETITOR COX FINALISES MERGER

CARSALES will have a new CEO as it takes on a fresh challenger to its crown as the dominant online car sales portal i...

BUSINESS CONFIDENCE AT A SIX-YEAR HIGH

SMALL and medium businesses have entered 2017 with their confidence at a six-year high, building on strong gains m...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter