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."
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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.
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