Virgin reveals 2020 result

VIRGIN Australia lost more than $3.1 billion in the 12 months to 30 Jun, according to figures submitted to the Australian Securities and Investments Commission late last month.

The now private company fell into administration during the period, with the COVID-19 pandemic forcing the suspension of international and most of its domestic operations.

Government assistance received by VA over the first three months of the pandemic amounted to about $165 million including $80.5 million in JobKeeper payments as well as other income from programs helping repatriate Australians, reduce airport costs and support freight.

Key management personnel were paid a total of $14.9 million during the year, while fees paid to the airline’s Deloitte administrators amounted to $13.4 million during the year.

The documents estimate the airlne was sitting on over $1 billion in “unearned revenue” including $620 million in flight bookings and credit vouchers, plus a further $436 million from the Velocity loyalty program.

Other revelations include a $125 million unsecured loan provided by the Queensland Investments Corporation, a further investment of $159.6 million by a subsidiary of the airline’s new owner Bain Capital, as well as confirmation that an agreement to utilise the Tiger Airways brand expired on 31 Mar this year.

As part of the Group’s restructuring plans about 3,000 people have left Virgin Australia, resulting in redundancy costs between $83m and $130m.

The company noted the accounts represented VA’s position in mid-2020, with the carrier now having a “much stronger balance sheet”.