Virgin Blue's shares fell 2.3% yesterday to AUD0.415, having dropped as much as 5% in early trade, after the carrier revealed first half profit could fall more than 50% year-on-year, due to a slowdown in consumer spending, the Sep-2010 booking system meltdown and fuel hedging losses.
Second half profits could also be hit by an expected AUD40 million shortfall in revenue as tourism to flood-affected Queensland (the carrier's home market) slows.
The airline expects net profit for the six months to 31-Dec-2010 to fall to AUD23 million-26 million, down from AUD62.5 million last year.
Asia Pacific airline shares performance: 25-Jan-2011
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.