Virgin Australia reports $355.6 million loss

Boeing 737-8MAX of Virgin Australia. Artist impression copyright Boeing.
Boeing 737-8MAX of Virgin Australia. Virgin Australia has decided to accelerate deliveries of the aircraft to take advantage of its improved fuel efficiency.
Artist impression copyright Boeing.

29 August 2014 – copyright David Eyre

Following hot on the heels of Qantas Group’s loss announcement yesterday, Virgin Australia has also announced a loss.

Key points:

  • accelerating the delivery of Boeing 737 Max aircraft to 2018 instead of 2019, to benefit from fuel efficiency
  • two oldest leased A330s being withdrawn – VH-XFA and VH-XFB (VH-XFA has already been withdrawn)
  • selling 35% stake in frequent flyer program
  • includes a $46 million loss from its 60% stake in Tigerair Australia, which will not be profitable until the 2017 financial year.
  • Skywest is now fully integrated into Virgin Australia and its resources industry FIFO charter business has increased revenue contribution by 30% in the 2013/14 financial year.
VH-XFB Airbus A330-243 (MSN 0372) of Virgin Australia at Perth Airport - Friday 23 May 2014
VH-XFB Airbus A330-243 (MSN 0372) of Virgin Australia at Perth Airport – Friday 23 May 2014
Taking off from a wet runway 24 at 2:44 pm. This leased aircraft (formerly with Emirates) is to be returned to the lessor as soon as a new A330 VH-XFJ is delivered. Sistership VH-XFA has already been withdrawn.
Photo © Keith Anderson

David Eyre

President, Aviation Association of WA Inc

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