Virgin profits down more than 60 percent

first_imgVirgin Blue profits have plummeted Virgin Blue has recorded a AU$37 million net profit before tax for the six months to December, reflecting a whopping 62.6 per cent decrease on the year before. Total revenue for the airline was AU$1.695 billion, up 11.8 per cent on 2009, whilst Revenue Passenger Kilometres (RPKs) increased by 14.4 per cent to 15.1 billion. Despite the massive plunge in profits, Virgin Blue chief executive and managing director John Borghetti said that the “core Virgin Blue business was sound”. “This is a very solid result considering the impact of a number of significant one-off factors, including the Navitaire IT system outage, restructuring costs and unusually severe environmental events in Australia and New Zealand,” Mr Borghetti said. In line with guidance provided in January, net profit after tax was AU$24 million, while underlying pre-tax profit stood at AU$72 million. Short and long haul operations yielded increases of 1 per cent and 15 per cent respectively, with long haul business “on track for reaching close to breakeven by year end”.Mr Borghetti also confirmed the carrier’s widebody Airbus 330s will start flying in May with Virgin’s “new business class product”. Source = e-Travel Blackboard: M.Hlast_img

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