Virgin Australia confident despite unclear outlook

Virgin Australia confident despite unclear outlook
By admin


Virgin Australia has described the outlook as unclear for the current financial year, but remained confident it has the upper hand over competitors.

Chief executive John Borghetti declined to give guidance at this stage, referring to challenges such as high fuel and an uncertain economic environment.

But he appeared unshaken in his confidence that Virgin was on the right strategic path.

“I am confident we have a sound platform from which we can respond to changing market conditions,” he said.

Chief financial officer Sankar Narayan reported underlying cost per available seat kilometre (CASK) growth of 4.5%, excluding fuel, which had helped the airline achieve a cost advantage over its nearest competitors.

“More importantly, with the product enhancements and the young age of the fleet, we will continue to maintain that cost advantage into the future,” he said.

While Narayan admitted the magnitude of the advantage was hard to quantify, Borghetti claimed it went into double digits.

A possible downturn in the business sector was unlikely to affect the carrier, Borghetti added.

“We don’t have a big chunk of that pie,” he said. “It’s all upside for us, even if it were to stay flat.”

Meanwhile, he insisted the airline was “not wedded” to any market share target, working instead towards a share that delivers the best return.

The carrier is also set to expand, with Borghetti revealing the airline intends to employ “many hundreds” of people this year.

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]