GO
Loading...

Enter multiple symbols separated by commas

Virgin Blue's Full-Year Profit Almost Doubles on Higher Demand

Australian airline Virgin Blue almost doubled its full-year earnings after attracting more corporate travelers, helping offset rising fuel bills.

Net profit for the year to June 30 was A$216 million (US$174 million) compared with A$112 million a year earlier. Net profit before one-off items was A$232 million.

This compared with analyst expectations of A$204.4 million, according to the mean of 9 forecasts on Reuters Estimates.

Virgin Blue, Australia's second-largest airline, said it expected further revenue growth this year but also higher costs as it sets up new services in New Zealand and to the United States.

Rival Qantas Airways also said last week passenger demand had pushed up annual earnings 50% and tipped a strong year with no sign of a let up in appetite for air travel.

Virgin Blue said it has 49% of its fuel requirements hedged for the current year and 77% of its currency requirements hedged.

The company last month said it planned to launch a new airline called V Australia to fly on routes between Australia and the United States. The plan still needs U.S. regulatory approval.

Virgin, 62% owned by Toll Holdings, also flies to New Zealand, Fiji and Tonga. It has about a third of Australia's domestic market where it competes against Qantas and its budget carrier Jetstar.

Virgin has six Boeing 777-300ER widebody aircraft on order with options for another six.

Competition is hotting up in Australia's domestic market with the arrival of Singapore's Tiger Airways and Qantas expanding its services. Middle Eastern carriers also adding flights to Australia routes.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Hero miles for military members: Real estate magnate's plea

    Chairman of the Fisher House Foundation, Ken Fisher, discusses the Hero Miles program with CNBC's Dina Gusovsky. During Military Appreciation Month, Fisher is asking every traveler to donate 1,000 of their miles to replenish the Hero Miles programs that is in danger of running out.

  • Cramer shuts down this market's haters

    "Mad Money" host Jim Cramer on why this market can't stop, won't stop.

  • From the battlefield to the boardroom

    Your Grateful Nation is dedicated to helping Special Forces veterans enter the corporate world and Knot Standard provides complimentary suits to vets. Mad Money's Jim Cramer spoke with Rob Clapper, Your Grateful executive director; John Ballay, Knot Standard co-founder and president; Tej Gill, retired U.S. Navy Seal; and Darren McB, active duty U.S. Navy Seal.