VIRGIN PROFITS SOAR

VIRGIN PROFITS SOAR

VIRGIN Blue Holdings Limited has recorded a $62.5 million profit for the December half, which is a sharp turn from a loss of more than $100 million in the previous half.

Managing director Brett Godfrey says the company was able to achieve the result on the back of cost reductions and enhanced productivity, during the toughest moment in the industry’s history.

“Airlines struggled because they are very much at the forefront of discretionary spending, but they’re also the first to spring back,” says Godfrey.

“We have a seasonal business and our traditionally busiest part of the year is the December half – that and ongoing strong price competition will likely see pressure maintained on yield improvement for the remainder of this year.”

The company has previously offered full year profit guidance between $80 million and $110 million.

Godfrey says he has a ‘bucket list’ to complete before leaving the company he founded, but indicated he may extend his stay past April.

“There’s a few things in the pipes I hope to get done before I leave - I set myself four or five things I want to complete, a sort of bucket list before I leave.

“I’ll remain on the board for a vetting period because Virgin’s been a life commitment for me, and after that I will stay in an advisory role - this is the job I always wanted and I’m not leaving it do anything else.”

He says the company’s V Australia will be ‘formidable’ once the US Department of Transport approves an extension of its partnership with Delta Airlines, which is likely to occur this calendar year.

“At the moment we’re halfway through a joint venture where we’ll be able to pull our planes, resources and people together to give a better product and service to customers – the ACCC has already approved it.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...

Scrap metal recycler Sims picks up Brisbane port site for $88 million

Scrap metal recycler Sims picks up Brisbane port site for $88 million

In order to acquire one of the few remaining Brisbane sites with de...

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

“No one plans for these things”: Metricon acting CEO denies crisis rumours following founder’s death

Just days after the sudden and unexpected death of Metricon founder...