Virgin Australia shares take a hit on profit warning
Virgin Australia’s share price took a beating after it warned of full-year losses of at least A$35.6 million.
Fuel costs and ‘foreign exchange headwinds’ are chiefly to blame, it said.
It says losses could be even wider, as the share price fell 8%.
The timing of Easter and the Australian election has also impacted performance.
It expects an earnings shortfall of about A$100m for the year ending June 30.
In response, the airline is trimming some domestic and New Zealand routes.
The Sydney-Auckland route will be reduced by three flights to 15 a week and Sydney to Christchurch service will be downgraded to a seasonal service.
Virgin will also suspend the Perth-Geraldton route from July.
"In the meantime, we are focused on short-term improvements including capacity and network reductions to ensure we are better meeting current demand from the corporate and leisure sectors," said CEO Paul Scurrah.
"There is a lot of work being done to develop our new strategy that will help position the group for long-term success."
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Strike action set to cause travel chaos at Brussels airports