Virgin did generate positive free cash of A$53.9m and has increased its cash balance to A$1.7b. Also appreciate that non-cash statuatory numbers have no impact on their business. We will see what their
Better Business II program can generate in additonal free cash.
But, it has about $1b in bonds coming due in the near future.
You can refinance bonds either prior to, or at maturity. Virgin can meet its debt repayments.
What is worrying is that at the EBITDA level - VAI and TT are negative. This means they are loss making at the operating level, which isn't good. Without equity or debt financing - you're bankrupt. Virgin's overallEBITDA sits around 6-7%, which isn't great, and below their peer in Qantas.
What I did like seeking is with capacity growth, so too did rASK and yield for VAD and VAI. That's good. VAI marginally, but considering the large capacity growth, it is still impressive.
TT also saw yield and rASK growth - but that is likely the result of the reduction in capacity and not a good revenue / cost management strategy.