Who’s your daddy? Virgin Blue falls back to earth

The mid-Jul-08 announcement by Toll Holdings to offload its stake in Virgin Blue (in the form an “in specie dividend” to shareholders), combined with a 24% reduction in the oil price put a rocket under Virgin Blue’s shares. The stock more than doubled in a month, before thudding back to earth with this week’s profit announcement and forecast of a very challenging outlook for 2008/09. The carrier’s high-flying margins have fallen and it has admitted it will be hard pressed to break even in the current financial year.

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