A Day after Qantas announced its significant loses due in part to Virgin Australia, Virgin too has announced loses of its own. Totalling $83.7 million, the quest to provide Australians with low cost air, is costing the rival aviation companies.
“Given the uncertain economic environment we are unable to provide guidance for the remainder of the 2014 Financial Year at this time,” chief executive John Borghetti said.
“The Australian aviation market continues to be impacted by the significant capacity growth which occurred during the 2013 Financial Year, compounded by weak economic conditions and the inability to recover the cost of the Carbon Tax.
“Consequently, the Australian domestic aviation industry has made a first half loss for the first time in 20 years.”
- Statutory Loss After Tax of $83.7 million, including impact of equity accounted investments
- Pre- tax Loss of $49.7 million (excl. the impact of Tiger air Australia ($ 18.4 million) and business transformation and other expenses ($49.9 million) )
- Outperformed main competitor on growth in Total Group Revenue, Domestic Yield, International Yield and Group Revenue Load Factor
- Comparable Unit Cost growth of 4.5% (incl. fuel, foreign exchange and the impact of Skywest)
- Total cash position of $896.4 million, up from $580.5 million at 30 June 2013, unrestricted cash position of $665.4 million, up from $326.5 million at 30 June 2013 and positive operating cash flows for H1 F Y14