Virgin warns fares may go up
An AAP report says that while Virgin Blue says it is on track to deliver positive earnings for the financial year, it may increase fares to combat rising fuel costs
Chairman Neil Chatfield, speaking at the annual meeting in Brisbane,said the airline expected earnings to stay positive as it began an expansion program expected to increase capacity by 25 per cent.
Next month Virgin Blue enters the New Zealand domestic market and late next year will launch its international airline, V Australia.
Mr Chatfield said Virgin’s other three airlines, Virgin Blue, Pacific Blue and Polynesian Blue, had returned positive results in 2006-07, which contributed to the of $216 million record profit.
“The next 12 months will be a period of exciting growth for Virgin Blue as we extend our operations across Australia, New Zealand and the South Pacific and commence long-haul international flying with the launch of V Australia in the fourth quarter of 2008,” Mr Chatfield said.
Chief executive Brett Godfrey warned that the fuel surcharge on fares might have to rise over the next few months if crude oil climbed above $US100 a barrel.
“We’re unlikely to do anything in the short term, but if it does spike and go over $US100 and looks like it’s going to remain there, we will need to do something in the next few months,” he said.
“All we’re alluding to is that if it maintains where it is today, this time next year we will most definitely have some addition to the fuel surcharge that we have at the moment.”
Virgin Blue’s fuel bill for 2006-07 was $489 million.
Mr Godfrey said he hoped to announce V Australia’s US services in February, with flights expected to begin by Christmas next year.
He did not “believe for a minute” that Air New Zealand would move to buy Toll Holdings’ 65 per cent stake in the airline if the logistics and transport company decided to sell.
“I just can’t see the Government of New Zealand acquiring an Australian airline…..but funnier things have happened,” Mr Godfrey said.
Toll’s managing director, Paul Little, has said it will decide by the end of the year whether to sell the Virgin Blue stake, which is worth an estimated $1.5 billion. Virgin Blue shares gained 3% to $2.25.
A Report by The Mole from AAP
John Alwyn-Jones
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
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026