Virgin Australia on track to profit

GMT 09:05 2015 Friday ,07 August

Arab Today, arab today Virgin Australia on track to profit

Chief Executive John Borghetti
Sydney - AFP

Virgin Australia posted a Aus$93.8 million (US$69.1 million) loss for the year on Friday, but said it was on track to return to profitability in 2016 as it reshapes its international business.

The result was a Aus$260 million improvement on the previous year for the country's second biggest carrier after Qantas and the airline said it expected the positive trajectory would continue.

"Based on current market conditions, all fundamental business metrics are on track for the group to return to profitability... for the 2016 financial year," chief executive John Borghetti said in a statement.

The airline said its underlying loss before tax was Aus$49 million in 2014-15, and its bottom line had benefitted from a strong turnaround in its domestic operations which returned to profitability.

Virgin said as part of its plan to improve the performance of its international division it was launching its budget subsidiary Tigerair Australia in the short-haul international market.

As a result, it will withdraw Virgin Australia from some routes, including several from Australia to Bali and one from Perth to Phuket with the Bali routes to be taken up by Tigerair.

Virgin took full control of Tigerair Australia last October, buying the remaining 40 percent it did not already own for Aus$1 from its Singapore-listed parent.

Since then Tigerair Australia has improved significantly, and was on track to full year profitability for next year, Virgin Australia said.

Virgin Australia shares eased slightly to close at Aus$0.435.

Arab Today, arab today
Arab Today, arab today
arabtoday arabtoday arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabs, Arab, Arab