Virgin Australia to slash jobs after posting full-year loss
Virgin Australia is planning a big shakeup with hundreds of job cuts and possible route reductions.
The airline will trim 750 jobs at head office as it looks to recover from a $349 million full-year loss.
The airline cited fuel and foreign exchange ‘headwinds’ and is embarking on a major cost-cutting program.
No job cuts will impact customer facing positions although cost-cutting measures could see routes scrapped.
The staff reduction will result in expected cost savings of about $75 million per year.
"We intend to further reduce flying across elements of our short-haul international and our domestic network to match our strategic positioning and the market conditions as well as to maximise route profitability," said new CEO Paul Scurrah.
"This may involve potential withdrawals from certain markets which are uneconomical for us."
Virgin’s low-cost unit Tigerair also saw its loss widen to $45 million, partly down to industrial action.
Still, its Velocity frequent flyer business performed well, adding more members and increasing earnings by more than 10% to $122.2 million.
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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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