View Full Version : Virgin Profit Downgraded

3rd Apr 2003, 06:08
With no protection via fuel/currency hedging and falling numbers of international tourists the low cost carriers are not strictly immune in this case.
Couple that with QF dumping capacity onto the domestic market and it is really a foregone conclusion.
Fromm AAP Reuters:

Virgin Blue profit forecast downgraded
6:39 AM April 3
Virgin Blue Airlines is expected to struggle to meet its 2002-03 profit forecast. In the wake of Qantas's 15 per cent profit downgrade on 28 March 2003, JP Morgan has sliced 18 per cent off Virgin's likely earnings to $A115 million for the full year. The downgrade was based largely on the likelihood of Qantas introducing more domestic services to help compensate for a pruning of international routes. The flagship carrier has expressed concern about falling international bookings, flowing from terrorism and the Iraqi war. JP Morgan's suggested Qantas profit for 2002-03 is $A442 million.

Big Hairy Potatoes
3rd Apr 2003, 14:38
Not bad anyway for an airline that was written off before it even got off the ground. I don't think they or anyone else were expecting a return for about 2-3 years. Late last year they were looking at a profit of about 45million, now their downgrading to 115 million.

5th Apr 2003, 17:00
I know nothing but I thought the profit projection was only 100 million:confused:

5th Apr 2003, 18:21
Hi sprucegoose,

During my annual leave I'll be visiting you in your hangar at Long Beach;) .

Looking forward to the tour:p , hoss

6th Apr 2003, 17:17
You won't find me in Long Beach Hoss. Try Portland.

11th Apr 2003, 23:28
It will not be a supprise if Virgin Blue go broke, Geary M was looking like Virgin are now when he fell over. Especially if the insane airfares they have been selling keeps happening.
Eg Peth Sydney Perth $158.00 !!!!!

12th Apr 2003, 17:51
What tha,

I always thought The Sprucegoose was in a hangar just next to the Queen Mary at Longbeach. Oh well,I'll have to find something else to do,shouldn't be too hard:D .

Cheers anyway, hoss

13th Apr 2003, 09:19

I think the owner of Evergreen purchased the Sprucegoose and moved it to Portland.


Is your theory the same for Qantas, they started this new round of cheap airfares. When Virgin matched the airfares, Qantas started a new round the next day that were cheaper again.