Virgin Blue shows strong growth
Business Day in The Age says that limited aircraft capacity has not stopped Virgin Blue recording a surge in passengers of just under 1 million for the 10 months to April 30.
The leisure carrier recorded a rise of 8.1 per cent in passenger numbers, up 12.8 million from 11.9 million at the end of April last year.
Monthly passenger numbers were up 10.1 per cent to 1.26 million for April, with capacity at 82.1 per cent, up from 76.5 per cent last year.
Virgin Blue attributed the rise to an increase in corporate travellers, a base Qantas continues to dominate but that Virgin is courting through airport lounges in the major capitals.
Deutsche Bank analyst Jason Bloom said the result reflected strong performances across the industry.
“It’s been an exceptionally good result, but it does pretty much mirror what everyone else is doing in terms of Qantas and Air New Zealand,” Mr Bloom said.
He said the arrival of Brazilian Embraer jets later this year would ease demand over the next 18 months. “We’re forecasting a 23 per cent increase in domestic capacity,” he said.
Virgin Blue closed up 4¢ to $2.64 yesterday.
Report by The Mole and Business Day
John Alwyn-Jones
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