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Virgin Blue's better-than-expected profitability in 1HFY2010; Expects tougher second half


Virgin Blue delivered a better-than-expected result in the six months to Dec-2009 (1HFY2010), returning to profitability in a challenging operating environment, aided by strict cost control efforts and improved domestic yields. The carrier reported a net profit after tax of AUD62.5 million (USD55.8 million) in the six months ended Dec-2009 (1HFY2010), for a net margin of 4.1% (compared to a net margin of -7.5% in the previous corresponding period). [2429 words]

Unlock the following content in this report:


  • Virgin Blue shares soar in 2009 
  • Revenue growth outpaces cost increases
  • Improvements in unit cost base
  • Group yields down by double-digits
  • Short-haul yields up, profitability jumps
  • To “vigorously defend” core domestic markets; to secure additional 50 aircraft for domestic operations
  • Outlook for V Australia improves, but still delivering losses 
  • V Australia managing exposure to US-centric market trends
  • Polynesian Blue contributes USD1.3 million to net profit
  • Cash balance boosted through equity raising exercise
  • Speculation of new CEO intensifies
  • Outlook: Challenging and volatile, but yield and profit improvements expected

Graphs and data:

  • Virgin Blue net profit margin (%): FY2006 to 1HFY2010
  • Virgin Blue financial highlights for six months ended 31-Dec-2009
  • Virgin Blue share price growth: Jan-2009 to Feb-2009
  • Virgin Blue revenue growth: FY2006 to 1HFY2010
  • Virgin Blue operating costs (% change year-on-year): 1HFY10 vs 1HFY09
  • Selected airlines labour cost per ASK and year-on-year labour cost change: Three months ended 31-Dec-2009
  • Virgin Blue Group short-haul network: B737/E-Jet fleet
  • Virgin Blue passenger numbers (mill): FY2006 to 1HFY2010
  • Virgin Blue RPK and ASK growth: Nov-2008 to Nov-2009
  • V Australia load factor development: Feb-2009 to Dec-2009
  • Virgin Blue Group long-haul operations
  • Virgin Blue fleet summary: Dec-2009
  • Virgin Blue hedging: fuel and forex
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