Aviation

Virgin posts strong second quarter profit

Petrina Berry - AAP

Virgin Australia is cruising through the clear, blue skies of profit.

The airline’s underlying profit before tax in the three months to December 31 rose 32.2 per cent to $73 million which equates to a statutory profit of $60.8 million, up by $49.6 million on the same period a year ago.

This follows a strong first quarter which saw Australia’s second largest carrier back in the black.

Virgin Australia chief executive John Borghetti said strong revenue growth from domestic travellers during the second quarter and ongoing improvement in Tigerair Australia helped boost the airline’s profit.

“Our performance in the second quarter was underpinned by strong unit revenue and yield growth across the Group, particularly in Virgin Australia Domestic, ongoing improvement in Tigerair Australia, strong momentum for Velocity and our continued strict cost discipline,” he said.

He said the airline’s international business also continued to improve, despite the financial impact of volcanic eruptions in Bali.

Virgin Australia’s revenue from domestic passengers rose 3.5 per cent during the second quarter.

Tigerair’s revenue bounced 9.1 per cent, while the airline’s international operation saw a 2.6 per cent rise.

The positive result has failed to impress investors with the share price falling one per cent, while the wider market rose by two per cent on Thursday afternoon.

CMC Markets chief market strategist Michael McCarthy said the figures indicate cost savings from oil price declines were behind the better result and not increased passenger numbers or higher fares.

“The (profit) percentage increase looks good but it was in line with expectations,” he said.

“Revenue has fallen but costs have fallen further and that is driving the increase in profitability but it does suggest that the increase in activity is due to a lower price point.”

optionsXpress market analyst Ben Le Brun said a bounce in oil prices overnight, which pushes up the costs of business for airlines, were also weighing on Virgin and Qantas share price on Thursday.

“The oil price movement overnight has not helped the airlines,” he said.

Virgin Australia’s first half results are due on February 11.

Shares in Virgin Australia retraced earlier losses to close steady at 49.00 cents, while Qantas dropped four cents to $3.86.


SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

Tourism

Travel Agents

Digital travel ad impressions up 40 per cent says Nielsen Ad Intel

Looks like your marketing team’s efforts are paying off, with ads views climbing dramatically in Australia following the most recent lockdown.

Share

CommentComments

News

Tourism

OMICRON: WHO urges those over 60 to cancel travel plans as SA tightens restrictions

The UN health authority warned countries that blanket bans don’t work, while an Aussie epidemiologist says the government’s current restrictions won’t make much difference.

Share

CommentComments

Wholesalers

Planeterra launches holiday fundraising for community tourism

Not sure what to get your colleague for Secret Santa? They’ll be hard-pressed to complain about a donation in their name to support community tourism projects.

Share

CommentComments

Destinations

WATCH: Rebel Wilson stars as glam castaway in new Tourism Fiji ad

The Aussie actress channels Tom Hanks’ Castaway in this latest campaign for Tourism Fiji, However, we’re not convinced Hanks could pull off the metallic dress as well as Wilson does.

Share

CommentComments

Hotels

Club Med opens first Canada property, reveals plans for new Utah ski resort

Those who enjoy the ease of an all-inclusive resort stay will be stoked to learn about Club Med’s latest spate of winter wonderland offerings.

Share

CommentComments

Cruise

Norwegian Cruise Line unveils its largest deployment in history

Batten down the hatches because NCL has released its 2024/25 line up including brand-new homeports in Haifa, Israel and La Romana, Dominican Republic.

Share

CommentComments

Aviation

US flight attendants rush back to self-defence in face of rising passenger unruliness

In order to avoid a drunken sky-high fight club breaking out, crewmembers are taking to the studio to keep the peace.

Share

CommentComments

Hotels

Accor introduce global portfolio of boutique hotels and luxurious resorts, Emblems Collection

A new line of luxury hotels and resorts are what we need to bring the world out of the global pandemic and into an opulent fantasy that only a Disney princess could think up.

Share

CommentComments

Tourism

Bali had 6.3 million tourists in 2019, in the first 9 months of 2021 it had 43

With tourism rates in Bali so low, we imagine that even Schapelle Corby would be gladly welcomed back.

Share

CommentComments

Destinations

Tourism

Destination NSW Launches Vibrant “Feel New Sydney” Campaign

Destination NSW unveils “Feel New Sydney” work. Just don’t expect the locals to be pleasant or let you in when driving.

Share

CommentComments

Aviation

Destinations

News

Tourism

Fiji welcomes first flight of international visitors in 20 months as borders open

Sydneysiders touched down yesterday to a big bula welcome almost two years in the making!

Share

CommentComments

Events

Tourism

I Love New York launches new training course for travel agents. Enter for your chance to win!

Calling all Aussie travel agents! Complete the training by the end of January 2022 and you could win a New York-style “za” for you and your team!

Share

CommentComments