Virgin Blue first-half meets guidance, warns of tough second half | The Australian
VIRGIN Blue Holdings has reported a sharp fall in first-half profit, in line with its own recent guidance, and said the second half is expected to be challenging.
Disruptions to flights caused by bad weather and a booking system outage last year contributed to a 62 per cent slide in net profit for the six months to December 31 to $23.8 million from $62.5m a year earlier, at the bottom end of the company's guidance of $23m-$26m.
Australia’s second-biggest carrier said a $72m underlying pre-tax profit was in line with guidance of $70m-$75m but down a little from $75.6m a year earlier.
While the business travel market is expected to improve, Virgin Blue said the domestic leisure market will be impacted by flat consumer confidence, forecast industry capacity growth and the flow-on of recent bad weather events.
The combined impact of floods and a cyclone in Virgin Blue's home state of Queensland is expected to be a $50m hit on revenue, it said.
VIRGIN Blue Holdings has reported a sharp fall in first-half profit, in line with its own recent guidance, and said the second half is expected to be challenging.
Disruptions to flights caused by bad weather and a booking system outage last year contributed to a 62 per cent slide in net profit for the six months to December 31 to $23.8 million from $62.5m a year earlier, at the bottom end of the company's guidance of $23m-$26m.
Australia’s second-biggest carrier said a $72m underlying pre-tax profit was in line with guidance of $70m-$75m but down a little from $75.6m a year earlier.
While the business travel market is expected to improve, Virgin Blue said the domestic leisure market will be impacted by flat consumer confidence, forecast industry capacity growth and the flow-on of recent bad weather events.
The combined impact of floods and a cyclone in Virgin Blue's home state of Queensland is expected to be a $50m hit on revenue, it said.
