Virgin Blue predicts fiscal year net loss of more than $30 million
Published: March 24, 2011
Photo: By Rob Finlayson.
Virgin Blue warned that it will post a A$ 30 million ($ 30.3 million)-A$ 80 million net loss for its full fiscal year ending June 30, owing to natural disasters and soaring fuel prices.
The airline cautioned it was likely to have “a challenging second half” when it announced a modest A$ 23.8 million net profit for its fiscal first half ended Dec. 31 ( ATW Daily News, Feb. 24 ).
Virgin Blue said Wednesday that its annual fuel bill has risen by A$ 50 million in just the past six weeks. It added that the Christchurch earthquake in late February is expected to have an A$ 15 million impact on the bottom line while the Queensland floods and Cyclone Yasi will have a combined impact of approximately A$ 50 million.
CEO John Borghetti said: “We have witnessed an unprecedented number of significant events in an extraordinarily short period of time, including natural disasters and a sharp spike in fuel prices. These events have severely impacted consumer confidence, resulting in a slower than usual recovery in tourism.”
The airline is in the process of re-branding and will drop the “Blue” from its name ( ATW Daily News, March 2 ).
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