DeBurcs
18th Oct 2005, 08:27
Budget airline Virgin Blue has increased its profit forecast for its 2004/05 financial year, but says it's still likely to fall around $50 million short of the previous year's result.
Virgin Blue today said its net profit forecast for 2004/05 will be in the order of $105 million, compared to the $159 million net profit in the previous year.
"The company now estimates its forecast net profit after tax for the 12 months ending 30 September 2005 will be in the order of $105 million," Virgin Blue said in a statement.
In August, the airline forecast that its net profit for 2004/05 would be within the range of $90 million to $100 million.
At the time, the budget airline said rising fuel prices and intense competition in the Australian domestic market were expected to impact profitability.
Patrick Corp Ltd, which is due to release a target statement today on a takeover bid by Toll Holdings, has a controlling stake in Virgin Blue.
Some analysts believe Virgin Blue has become a noose around the neck of Patrick, claiming that the logistics and ports operator would have a brighter future without its 62.4 per cent stake in Virgin Blue.
Virgin and rival Qantas are battling sky high fuel costs as the price of crude oil remains near all-time highs.
The oil price has risen more than 60 per cent in the past year.
Virgin said in August it was expecting an increased fuel cost of approximately $150 million for its 2004/05 financial year, compared to the fuel bill in the prior year.
Qantas last week said it faced "massive" challenges in the year ahead due to the high price of fuel and would not achieve the earnings of $763.6 million reached in its 2004/05 year.
At 1025 AEST Virgin Blue shares were up half a cent to $1.56 and Qantas shares were down four cents to $3.42.
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No comment from me, I just wanted to get in first with the news-"scoop" since I have nothing better to do today.
Virgin Blue today said its net profit forecast for 2004/05 will be in the order of $105 million, compared to the $159 million net profit in the previous year.
"The company now estimates its forecast net profit after tax for the 12 months ending 30 September 2005 will be in the order of $105 million," Virgin Blue said in a statement.
In August, the airline forecast that its net profit for 2004/05 would be within the range of $90 million to $100 million.
At the time, the budget airline said rising fuel prices and intense competition in the Australian domestic market were expected to impact profitability.
Patrick Corp Ltd, which is due to release a target statement today on a takeover bid by Toll Holdings, has a controlling stake in Virgin Blue.
Some analysts believe Virgin Blue has become a noose around the neck of Patrick, claiming that the logistics and ports operator would have a brighter future without its 62.4 per cent stake in Virgin Blue.
Virgin and rival Qantas are battling sky high fuel costs as the price of crude oil remains near all-time highs.
The oil price has risen more than 60 per cent in the past year.
Virgin said in August it was expecting an increased fuel cost of approximately $150 million for its 2004/05 financial year, compared to the fuel bill in the prior year.
Qantas last week said it faced "massive" challenges in the year ahead due to the high price of fuel and would not achieve the earnings of $763.6 million reached in its 2004/05 year.
At 1025 AEST Virgin Blue shares were up half a cent to $1.56 and Qantas shares were down four cents to $3.42.
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No comment from me, I just wanted to get in first with the news-"scoop" since I have nothing better to do today.