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TD breaking news – Virgin reports $185.8m full year loss

Result a $38.9 million improvement on 2015/16.

Virgin Australia has just released its full year results for the 12 months to 30 June, with the carrier citing a “significant improvement in performance” on the previous corresponding period. The statutory loss after tax of $185.8 million was $38.9m smaller than last year, impacted by restructuring charges from the airline’s ‘Better Business’ program.

The Underlying Loss Before Tax was $3.7 million, with the fourth quarter showing a particularly strong improvement of $38.4 million on Q4 in 2015/16. Positive free cash flow of $34.3 million was $126.4 million better than the previous year.

CEO John Borghetti said throughout the year the group had maintained a strong focus on improving its balance sheet. He said 2016/17 was the first year of the three year Better Business program, and announced an increased savings target which will see the program deliver $350 million per year in annualised net free cash flow savings by the end of the 2019 financial year.

VA’s domestic performance was impacted by subdued trading conditions including reduced demand for regional and corporate travel, Borghetti said. Virgin Australia International was profitable for the 2017 financial year, and Tigerair Australia’s domestic operations were also profitable – but the overall Tigerair business was impacted by the launch and subsequent withdrawal of operations to Bali.

Borghetti also confirmed the carrier would roll out wireless inflight internet to its Boeing 737, Boeing 777 and Airbus A330 fleets for both domestic and international operations.

“I would like to sincerely thank our people for their unwavering focus on delivering a rewarding experience for our customers, while ensuring we meet our Better Business program targets,” he said.

More details in today’s issue of Travel Daily.


The above Breaking News Alert was sent to Travel Daily subscribers on 10 Aug 17

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