REPORTING SEASON: Virgin Australia (VAH)
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Figure 1: Virgin Australia 12 month chart
Australia’s second biggest airline, Virgin Australia (VAH) posted a $98.1m loss for FY13 (July12-June13), following the biggest restructure in the carrier’s history.
The result was held back most by approximately $100m in restructuring costs – linked to the acquisition & integration of both Skywest & Tiger, together with the move to its Sabre booking system.
VAH increased fares for its domestic & some international flights starting mid-August.
The market was well aware of the likely disappointing annual result due to two profit downgrades by VAH in the past three months.
The carbon tax has cost VAH $47.9m over the year; a cost it was unable to recoup in revenue.