Login Now to remove this and all advertisements (GOLD and SILVER members)
Not a member? Register Now for free

Why is Virgin Blue´s share price suffering?

Status
Not open for further replies.

sambo

Intern
Joined
Jun 2, 2004
Messages
90
Points
115
I just noticed that Virgin blue´s share price started a 25% dive around March 31. Does anyone know what may have triggered this? Is it purely the perceived threat posed by Jetstar?

Sam
 

wleong

Intern
Joined
Jan 26, 2003
Messages
87
Points
0
My assumptions would be related to Oil prices and a little bit of competition.
 

QF WP

Enthusiast
Moderator
Joined
Jun 20, 2002
Messages
17,727
Points
1,570
Qantas
LT Silver
Virgin
Platinum
Gee, where do I start - articles like these:

Virgin Blue is keen to follow domestic rival Qantas into the developing low-cost Asian market and has already held talks with a number of prospective partners...(June 14)

High oil prices threaten the recovery of the global airline industry, which is emerging from the crisis caused by last year's SARS epidemic and the Iraq war, said the head of the International Air Transport Association...(28 May)

jetstar is hoping to capture two-thirds of all domestic passengers as part of a strategy to protect parent airline Qantas' market share from fellow budget flyer Virgin Blue...(26 May)

Virgin shares still in decent... (May 19 )

Virgin Blue yesterday failed to shake off concerns its growth may have partly stalled, after a solid full-year profit was clouded by a sharp fall in passenger yields and the looming launch of low-cost rival Jetstar next week... (May 18 )

Virgin Blue will lift airfares next week, imposing a fuel surcharge on all bookings to counter the cost of rising oil prices...(May 14 )

Virgin Blue shares have struck turbulence, struggling to remain above their issue price amid fears of rising competition as analysts concede their initial estimates for the budget carrier's earnings were too optimistic...(23 April)

I trust these should give you some idea, sambo....
 

clifford

Established Member
Joined
Jul 6, 2004
Messages
1,829
Points
420
At the risk of being considered facetious, could I suggest it’s because VB is an … airline.

In my opinion, airlines and investing don't mix, unless ... you are Richard Branson (or someone who has just been declared bankrupt).

You must have heard the advice on how to make a million in the airline industry ... "start with 2 million" ...

(I wouldn't admit that I've been associated with the aviation industry for over 30 years, either).
 
Vinomofo is the best wine deals site on the planet. Good wines, real people and epic deals, without all the bowties and bs.

Recommended by the Australian Frequent Flyer
Status
Not open for further replies.

Community Statistics

Threads
86,601
Messages
2,099,941
Members
53,909
Latest member
Annie1153
Top