- Dec 6, 2004
It's great to see that Virgin Blue is operating strongly despite the issues it has had to face over the past 12 months, e.g. ownership, high oil prices, and strong competition. Way to go.theage.com.au said:Virgin Blue on cloud 9 with results
August 24, 2006
VIRGIN Blue has flown into the sunshine despite the gloom surrounding much of the airline sector, reporting a 12 per cent jump in net profit for the nine months to June.
The result comes despite spiralling fuel costs and increasing security concerns. The company is also looking at emulating Jetstar's international strategy by developing an Asian network.
Managing director Brett Godfrey said Virgin was well placed to perform even if the economy stumbled. "If we do see some softening of consumer sentiment, which is what some people are suggesting … people tend to trade down and try things they haven't tried before," Mr Godfrey said.
In the nine months to June, the low-cost carrier had a net profit of $84.5 million despite fuel costs jumping $70 million. Fuel now accounts for 26 per cent of Virgin's overall costs compared with 14 per cent three years ago. Mr Godfrey said Virgin "was in a sweet spot" as a result of higher efficiencies and stronger passenger numbers. This had come despite being caught "in a pincer movement between Qantas and Jetstar" in the past couple of years.