Virgin profit prospects slide

[markis10]

Hmm, interesting albeit short story which completely ignores RPKs which were up 10% year to year.:

VIRGIN Australia's profit prospects have been downgraded as the airline struggles to fill additional services brought in to capture growing markets.

Virgin figures show the proportion of seats filled with paying passengers for February was at its lowest point in about four years.


http://www.heraldsun.com.au/busines...rough-ride-ahead/story-fn7j19iv-1226321658917

 

[oz_mark]

Well, Virgin were chasing yield, and it looks like they have succeeded in that (based on the last profit figures).

The challenge going forward will be to continue to grow the business to capitalise on the improvements they have made. Some of anecdotes around service delivery issues are more of a problem for them, I would have thought.

 

[TheInsider]

Cookies must be enabled | Herald Sun

Stupid pay wall. Does it have much other info?

 

[Nigelinoz]

Stupid pay wall. Does it have much other info?

There is also a short article in Business Spectator but it doesn't have any detail really.

Leading analysts have downgraded Virgin Australia Ltd's profit prospects, according to a report in The Herald Sun.
The latest figures from the airline show the number of seats filled with paying passengers is at its lowest level in about four years.

Analysts downgrade Virgin profit prospects | News | Business Spectator

Cheers
N'oz

 

[Moopere]

I thought that the last believable word on this was that VA was hunting 5% market share and gained that and a lot more besides ??? Feb lowest level for paying passengers eh? Mmm. Presumably lots of rewards passengers? Anyway, as Oz_Mark says, I thought the real game here was yield.

Not really all that interesting to have planes full of paying passengers if your margins are so low you're not really making a decent return on investment. Better to make larger margin per pax overall and grow your market to fill the capacity... presumably they are not going broke chasing higher a yield market (??)