This looks like good news . . . hopefully the industry has turned the corner?
Virgin Blue's Godfrey trumpets recovery
Airline Transport World
Tuesday December 1, 2009
Virgin Blue CEO Brett Godfrey told shareholders that the airline is back in the black after a difficult period at the beginning of 2009 and now is forecasting a profit for the fiscal year ending June 30, 2010.
"We are currently profitable again," he told the airline's annual general meeting in Brisbane. "We expect that if the market continues as it is at the moment we'll be able to maintain that guidance through to June 30 [2010]."
Godfrey said Blue has enjoyed a 20% growth in higher-yield corporate and government business, and that despite initial setbacks its V Australia long-haul subsidiary is recording loads of 75%. He added that the group sees no reason to alter its original prediction that V Australia would be profitable within 18 months of its February 2009 launch.
In August, Virgin Blue Holdings blamed the tough operating environment, one-off charges and nonrecurring costs for a A$160 million ($144 million) loss in the 2008-09 fiscal year, the company's worst-ever result and a reversal from the A$97.7 million surplus reported the prior year (ATWOnline, Aug. 28).
The airline has started recruiting its next CEO, with Godfrey set to retire in December 2010. He did not elaborate yesterday on configuration changes expected for Blue's domestic fleet or the imminent order for up to 70 737s and six 777-200LRs (ATWOnline, Nov. 6)
by Geoffrey Thomas