Another disaster result. How long can this company survive? Losses in nearly every part of the business.
How can an airline in a country that is part of a duopoly not make money?
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From the Age:
Virgin Australia has reported a $315 million full-year loss as soft demand, higher fuel costs and unfavourable currency movements made the task of turning it around an even bigger challenge for its new boss.
The result is an improvement on last year's $653 million loss, but is still the airline's third-worst performance. Virgin Airways has now posted seven straight years of losses adding up to $1.9 billion.
The company said it would make 750 corporate and head office roles redundant by the end of the current financial year to save $75 million in costs.
In May, Virgin warned that on an underlying level, which strips out some one-off costs, earnings would fall by at least $100 million and swing to a loss of $35.6 million, or lower. The result came in worse than that, with an underlying loss of $71.2 million.
Virgin's chief executive Paul Scurrah, who was brought in in March to replace long-time boss
John Borghetti, said the result showed the airline must "improve" its financial performance.
"While we have continued to grow revenue and have a strong loyal customer base, we need to make changes to our costs to ensure we see financial benefit from the growth in our business," he said