Wirraway
19th Nov 2004, 05:40
AAP
November 19, 2004 - 4:20PM
Virgin Blue medium outlook positive: CEO
Virgin Blue chief executive Brett Godfrey says while the airline's short-term outlook remains cautious, the company sees a more positive future from March 2005.
Mr Godfrey said if 10 per cent capacity growth continued the airline expected declining yields to firm in the 12 months from March 2005.
"The outlook remains cautious for us ... to the end of March 2005," he said.
"Beyond that, assuming things do go our way, we see a different situation developing next year.
"It's a pretty optimistic outlook for us medium to long term."
Earlier this week, Virgin Blue reported a better than expected two per cent fall in half year net profit to $63 million.
Speaking at a Securities Institute lunch in Melbourne Mr Godfrey said Virgin Blue could control 70 per cent of its costs but was under pressure from rising fuel costs and increasing airport charges.
Fuel increases cut $100 million off the bottom line in 2004/05, and the company did not expect prices to ease.
"We're forecasting fuel at $US60 (a barrel) and the dollar at 74 US cent," Mr Godfrey said outside the briefing.
The price of jet fuel was trading this week at over $US56.00 a barrel.
The price of light, sweet crude oil for December on the New York Mercantile Exchange fell 2 cents from its overnight closing to $US46.20 per barrel mid-morning in Asia Friday.
The Australian dollar hit another nine-month high on Thursday lifting 0.75 US cents to 78.17 US cents.
Mr Godfrey said Virgin Blue was benefitting from the strengthening Australian dollar.
However he said increases to airport fees since 2001 had cost the airline $150 million a year.
Mr Godfrey told the lunch if Virgin Blue had its time over again it would have bought the airport terminals off Ansett when it the chance.
"And we'd have had to hock the airline to do it," he said.
Virgin Blue has applied to the courts to have airports brought back within the fold of the Australian Competition and Consumer Commission reviewing processes.
The lunch was told that Virgin Blue's overseas operation Pacific Blue was looking to increase its services to Fiji with a daily services expected to be announced soon.
Mr Godfrey said the company was looking at growing through freight and Asian opportunities and hoped to make an announcement within six months.
He confirmed Virgin Blue was in talks with two parties in Asia including Hong Kong's Shun Tak Holdings Ltd, a conglomerate controlled by Macau gambling tycoon Stanley Ho, about running a no-frills carrier from Macau.
© 2004 AAP
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November 19, 2004 - 4:20PM
Virgin Blue medium outlook positive: CEO
Virgin Blue chief executive Brett Godfrey says while the airline's short-term outlook remains cautious, the company sees a more positive future from March 2005.
Mr Godfrey said if 10 per cent capacity growth continued the airline expected declining yields to firm in the 12 months from March 2005.
"The outlook remains cautious for us ... to the end of March 2005," he said.
"Beyond that, assuming things do go our way, we see a different situation developing next year.
"It's a pretty optimistic outlook for us medium to long term."
Earlier this week, Virgin Blue reported a better than expected two per cent fall in half year net profit to $63 million.
Speaking at a Securities Institute lunch in Melbourne Mr Godfrey said Virgin Blue could control 70 per cent of its costs but was under pressure from rising fuel costs and increasing airport charges.
Fuel increases cut $100 million off the bottom line in 2004/05, and the company did not expect prices to ease.
"We're forecasting fuel at $US60 (a barrel) and the dollar at 74 US cent," Mr Godfrey said outside the briefing.
The price of jet fuel was trading this week at over $US56.00 a barrel.
The price of light, sweet crude oil for December on the New York Mercantile Exchange fell 2 cents from its overnight closing to $US46.20 per barrel mid-morning in Asia Friday.
The Australian dollar hit another nine-month high on Thursday lifting 0.75 US cents to 78.17 US cents.
Mr Godfrey said Virgin Blue was benefitting from the strengthening Australian dollar.
However he said increases to airport fees since 2001 had cost the airline $150 million a year.
Mr Godfrey told the lunch if Virgin Blue had its time over again it would have bought the airport terminals off Ansett when it the chance.
"And we'd have had to hock the airline to do it," he said.
Virgin Blue has applied to the courts to have airports brought back within the fold of the Australian Competition and Consumer Commission reviewing processes.
The lunch was told that Virgin Blue's overseas operation Pacific Blue was looking to increase its services to Fiji with a daily services expected to be announced soon.
Mr Godfrey said the company was looking at growing through freight and Asian opportunities and hoped to make an announcement within six months.
He confirmed Virgin Blue was in talks with two parties in Asia including Hong Kong's Shun Tak Holdings Ltd, a conglomerate controlled by Macau gambling tycoon Stanley Ho, about running a no-frills carrier from Macau.
© 2004 AAP
Brought to you by
=========================================