Virgin Blue flags return to profit
February 4, 2010
Virgin Blue Holdings Limited (VBA) said it expected it would swing back to a pre-tax profit of between $80 million and $110 million for the 2010 financial year, against a loss of $93 million last year.
The airline said the result was attributed to two key factors. Firstly, oil prices fell 27.6% to around $92 per barrel.
Secondly, the company said, there had been a rebound in the number of passengers traveling, notably domestic business passengers where numbers “would be broadly in line with the same period in 2008.”
The company said pressures would remain from seasonal fluctuations and strong competition.
At the close Thursday, Virgin Blue shares were trading at 55c each.
The airline said the result was attributed to two key factors. Firstly, oil prices fell 27.6% to around $92 per barrel.
Secondly, the company said, there had been a rebound in the number of passengers traveling, notably domestic business passengers where numbers “would be broadly in line with the same period in 2008.”
The company said pressures would remain from seasonal fluctuations and strong competition.
At the close Thursday, Virgin Blue shares were trading at 55c each.
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