Virgin Australia Group reports improved underlying profitability in 4QFY2016

Virgin Australia Group reported (28-Jul-2016) the following trading update:

• Three months ended 30-Jun-2016:
• • Underlying EBIT: AUD26.1 million (USD19.5 million), an improvement of AUD26.7 million (USD19.9 million) year-on-year;
  • Underlying profit (loss) before tax: (AUD21.9 million) (USD16.3 million), an improvement of AUD15.0 (USD11.2 million);
  • Net profit (loss): (AUD228.4 million) (USD170.3 million), a decline of AUD210.6 million (USD157.0 million);
  • Passenger numbers: 5.8 million, +4.2% year-on-year;
  • • Virgin Australia domestic: 4.3 million, +4.6%;
    • Virgin Australia International: 548,162, -14.0%;
    • Tigerair Australia: 1.0 million, +15.4%;
  • Passenger load factor: 79.7%, +4.5 ppts;
  • • Virgin Australia domestic: 78.5%, +5.8 ppts;
    • Virgin Australia international: 79.0%, +2.1 ppts;
    • Tigerair Australia: 85.6%, +3.3 ppts;
• 12 months ended 30-Jun-2016:
• • Underlying EBIT: AUD210.6 million (USD153.4 million), an improvement of AUD144.7 million (USD105.4 million);
  • Underlying profit before tax: AUD41.0 million (USD29.9 million), an improvement of AUD90.1 million (USD65.6 million);
  • Net profit (loss): (AUD224.7 million) (USD163.7 million).

*Based on the average conversion rate at AUD1 = USD0.745712 for three months ended 30-Jun-2016
*Based on the average conversion rate at AUD1 = USD0.728459 for 12 months ended 30-Jun-2016

Virgin Australia Group: "The Group improved its underlying performance, passenger numbers and load factors in the fourth quarter in a challenging operating environment. During the quarter, the Group took action in response to operating conditions through strategic capacity reductions in line with demand," John Borghetti, CEO. Source: Company statement, 28-Jul-2016.