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Virgin Blue Group - Pretax profit to fall AUD200 million due to hedging losses


Virgin Blue stated its pretax profit would fall by AUD200 million (USD131 million) in the 12 months ended 30-Jun-08, due to hedging losses. The airline will book the price of hedge positions at market levels and take a pretax charge in the financial year. [1911 words]

Unlock the following content in this report:


  • Defers some capital expenditure in FY09; but no need to raise capital or equity
  • Still in the "eye of the storm" - FY09 to be the "most difficult" year yet
  • Load factor back above 80%, but down 2.6 ppts, in Oct-08
  • Experiencing period of capacity growth; but capacity exceeding demand
  • Upgrades premium economy product
  • Reverses fuel surcharge as jet fuel prices fall
  • Promoted to Australia benchmark index
  • "Looking forward" to V Australia launch; V Australia gains reprieve on Australia-US route - Green Paper highlights

Graphs and data:

  • Select carriers' losses/gains from 3Q08 fuel hedging
  • US carriers' losses/gains from 3Q08 fuel hedging
  • Virgin Blue monthly passenger traffic (millions) and load factor (%): 12 months to 31-Oct-07 vs 12 months to 31-Oct-08
  • Virgin Blue aircraft delivery schedule: 2008 to 2013
  • Virgin Blue capacity (ASK) growth: Jan-07 to Oct-08
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