Virgin loss blows out to $69 million

Virgin loss blows out to $69 million
Virgin Australia losses have widened to $69 million with an underlying loss before tax of $62.3 million.

Virgin has attributed some of this to Cyclone Debbie and the severe weather in Queensland along with the revenue impact of the withdrawal of Tigerair’s Australasia’s Bali operations.

A subdued domestic market and currency fluctuations on US-dollar denominated debt also contributed to the result.

Virgin said it was successfully implementing its strategy of reducing its debt load.

It said net debt had been cut by $200 million with accelerated debt repayments of $169 million during the first half of 2017.

As of 31 March 2017, Virgin’s net debt had reduced by $627 million.

Based on current market conditions, the group said it expected an improvement in its underlying performance in the fourth quarter of 2017 financial year.

 



An award winning author and journalist, commentator, lecturer, and speaker, Leon is a freelance business journalist who covers a range of areas including politics, strategy, globalization, leadership and all the big trends ahead. His main skill is summing up all the news that’s around. For the last 30 years, his main focus has been on management issues. He also produces two podcasts for RMIT University, Talking Business and Talking Technology. Leon has worked for Fairfax, News Limited, AAP and the Herald and Weekly Times.