Virgin downgrades profit19jan05VIRGIN Blue today said it...

Virgin downgrades profit

19jan05

VIRGIN Blue today said it expected its full year net profit would be 10 to 15 per cent below the previous year, due to disappointing load factors.

Virgin Blue said while yields had shown some stabilisation in the three months since its half year results, load factors had been disappointing, culminating in the 73 per cent load factor reported today for the month of December.
"Based on the now completed December results and a reassessment of the three months to 31 March, the company anticipates its post tax profit for the full year ending 31 March 2005 will be in the order of 10 to 15 per cent below that achieved for the last financial year."

Last financial year, Virgin Blue reported a net profit of $158.5 million.

Virgin Blue's revenue load factor measures passenger kilometres against available seats.









Virgin Blue chief executive Brett Godfrey said the fundamentals of the business remained sound and under control.

"However, sluggish demand, reported previously for November and now December 2004 continues," Mr Godfrey said in a statement.

"As a consequence, passenger numbers for the full year have been revised downwards by approximately 2.5 per cent.

"This deterioration is principally responsible for the decline in profit now expected for the year to 31 March 2005."

He also said the company was continuing with initiatives to retain existing passengers and attract new passengers.