Virgin back in the black
VIRGIN Australia has delivered its strongest first-half result in 10 years, rebounding from past weakness to post an underlying pre-tax profit of $102.5 million.
The carrier’s group statutory profit after tax was $4.4m, up $25.9m over the first-half loss of $21.5m last year, while group revenue was up 6% to $2.791b ( TD breaking news).
“The group has significantly improved its underlying financial performance compared to the prior corresponding period, recording one of our strongest ever first half results,” said ceo and md John Borghetti.
“This demonstrates the success of our long-term strategy to reposition the business and strengthen its financial foundation; however there is more work ahead to ensure we continue to deliver,” he said.
The airline’s domestic network performed strongly, increasing its earnings (EBIT) by 91.4% over the first half of last financial year.
Tigerair’s performance was hit by its forced exit from Bali, which resulted in surplus aircraft being deployed temporarily on its domestic network.
The low-cost arm’s earnings (EBIT) fell from $6.2 million in the first half of last year to a loss of $6.7 million as a result.
Borghetti said the group’s improvement was expected to continue in the second half.
VIRGIN Australia today confirmed it had no plans to privatise, with the company to remain listed on the Australian Stock Exchange after discussions with its major shareholders.
Chairman Elizabeth Bryan said following the VA annual general meeting in Nov the Board had been looking at whether it was appropriate to remain listed and had decided not to go private.
However she noted the small free float of shares, with more than 38,000 shareholders of whom 21,000 currently hold “unmarketable parcels of shares” worth less than $500.
The Board has decided to offer an “unmarketable parcel buy- back facility” where they can sell up to 1,666 shares for 30c each back to the company.
Unless they opt out by Tue 06 Mar, the shares will be automatically bought back in full and cancelled, with no brokerage or handling fees to be charged.