Virgin Blue reports 100 million six month loss

Virgin Blue, the second-largest airline in Australia, has posted a loss of AU$101 million for the six months ended 31 December 2008, and its chief executive is warning that the airline industry is likely to continue experiencing a tough environment for up to two years as the economic downturn slows travel demand.

For the same six-month period one year earlier, the carrier reported net profits of AU$113 million, Virgin Blue reported on Monday in financial statements it sent to the Australian Securities Exchange. Revenues for the six months rose by 11 per cent, to AU$1.35 billion.

The Australian carrier noted that the global financial crisis had led to a “notable loss” of confidence by consumers during the last quarter of 2008.

“The softening demand and other factors contribute to this being the most volatile operating environment in the history of commercial aviation, Australia included,” the company added. Virgin Blue and Qantas are the dominant carriers in Australian commercial aviation.

As the airline attempt to attract customers, domestic fares have reached a 17-year low. Virgin Blue said that yields have been hit by a combination of the low fares and low demand, and that it would not be paying an interim dividend.

Thanks to www.usatoday.com for the above quotes, for more information on this article please visit their website.

www.virginblue.com.au