Virgin Blue uncertain on outlook

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Nov 6, 2002

November 17, 2004

Discount airline Virgin Blue has reported a slight drop in net profit for the first half of 2004/05 and says its outlook remains uncertain.

Virgin Blue posted a 1.8 per cent drop in net profit to $63 million for the half year ended September 30, 2004.

Revenue was up 27.6 per cent to $786.9 million.

Virgin did not declare a dividend for the period.

In commentary on its performance Virgin Blue said weakened yields, record fuel prices and increased domestic competition had overshadowed the introduction of new capacity.

"The outlook remains uncertain," Virgin Blue said.

"Yield is expected to remain under pressure and below last year's levels.

"While fuel continues to be volatile and at record prices, Virgin Blue remains exposed to further increases in fuel prices that may not be recoverable through fare increases."

Virgin Blue said it carried more than six million passengers in the half year, an increase of 39 per cent on the first half of 2003/04.

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