Virgin Australia cites impact of fleet simplification, currency and subdued domestic conditions.
Virgin Australia Holdings Limited has just reported an Underlying Loss Before Tax of $62.3 million for the third quarter of 2017 financial year, a decline of $43.7 million from last year’s $18.6 million loss for the corresponding period. The statutory after-tax result for the three months to 31 March 2017 was $69 million, and $90.6 million for the nine months to the end of March.
The carrier said it was impacted by costs associated with simplifying its fleet, foreign exchange fluctuations, the withdrawal of Tigerair Australia’s Bali operations, Cyclone Debbie and “subdued domestic industry trading conditions”.
Virgin Australia said it had made strong progress in implementing initiatives under its three year Better Business program during the quarter, remaining on track to cease all Embraer 190 operations by the end of the year and deliver net free cash flow savings of $300 million annually by the end of the 2019 financial year. The company said it continued to improve its debt and financial leverage as a result of successful capital management measures.
MEANWHILE the Australian Competition and Consumer Commission has also just granted authorisation to the proposed Charter Alliance Agreement between Virgin Australia and Alliance Aviation Services.
The pact will see the carriers jointly bid for and contract with corporate charter customers in relation to the provision of fly-in fly-out services. The ACCC said it considers there are public benefits that outweigh any detriment arising from the loss of competition as a result of the pact.
More details in today’s issue of Travel Daily.