Virgin Blue forecast cut, but revival on the way
MORE competition on key routes and expectations of a softening leisure market have prompted Royal Bank of Scotland to slash FJ’searnings forecast by 20 per cent.
According to a report in The Australian, RBS lowered its forecast for the airline’s 2009-10 profit before tax by 20.3 per cent to $98.2 million but said it saw potential for growth and a doubling of pre-tax profit to $187.1m in fiscal 2011.
This potential upside included the corporate and government travel market share gains and the likely approval by US authorities of the joint venture with Delta Air Lines.
RBS analysts said that fewer hours worked during the economic slump and recent interest rate rises had led to weaker retail sales and a dampening of leisure demand.
"Given Virgin Blue’s exposure to leisure travellers, we see this weakness translating into reduced yields as the carrier stimulates demand in the short term by discounting fares," the analysts, who retained their buy recommendation, said in a note.
"However, with economic conditions improving, and the employment market tightening in (calendar) 2010, we expect wage growth to follow."
Philip Thornily
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 
U.S.A. and Israel attacks on Iran impact air movements in the Gulf (Update 1.00pm CET)
Global tourism exceeds 1.5 billion travelers announces UN-Tourism
Qatar Airways offers reduced timetable to over 60 destinations
WTTC global tourism reached record economic impact of 11 trillion in 2025
Marginal increase for New York City tourism in 2025