Virgin Blue shares slump on profit warning

[Slats7]

VIRGIN Blue has forecast a sharp fall in fiscal first-half profit due to the Queensland floods and an outage of its booking system.

Australia's second biggest carrier forecast a net profit for the six months to December 31 of $23 million to $26m, down from $62.5m a year before.

In early trade, shares in Virgin Blue fell 2.5 cents, or 5.88 per cent, to 40 cents.



Virgin Blue shares slump on profit warning | The Australian



Is it just me or does Borghetti seem to be out of his depth?

 

[stuartfaz]

VIRGIN Blue has forecast a sharp fall in fiscal first-half profit due to the Queensland floods and an outage of its booking system.

Australia's second biggest carrier forecast a net profit for the six months to December 31 of $23 million to $26m, down from $62.5m a year before.

In early trade, shares in Virgin Blue fell 2.5 cents, or 5.88 per cent, to 40 cents.



Virgin Blue shares slump on profit warning | The Australian



Is it just me or does Borghetti seem to be out of his depth?

I don't think so. A lot of what he's doing will take time to implement and show results. In a year you could probably judge better.

 

[pauly7]

I don't think so. A lot of what he's doing will take time to implement and show results. In a year you could probably judge better.

I agree - they need to spend BIG time to get their product and service up to a standard to compete with QF so there is always going to be some short term pain for long term gain.

What they really don't need is the oil price now creeping up and the macro envirnoment softening - that could slow them down more...

 

[odysseus]

VIRGIN Blue has forecast a sharp fall in fiscal first-half profit due to the Queensland floods and an outage of its booking system.

Australia's second biggest carrier forecast a net profit for the six months to December 31 of $23 million to $26m, down from $62.5m a year before.

In early trade, shares in Virgin Blue fell 2.5 cents, or 5.88 per cent, to 40 cents.



Virgin Blue shares slump on profit warning | The Australian



Is it just me or does Borghetti seem to be out of his depth?

Well, neither the floods nor the breakdown were due to him, or something he could do so much to completely mitigate.

I don't think VBA is a great investment anyway, but I wouldn't ascribe this profit forecast change due to his poor management.