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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. [1145 words]

Unlock the following content in this report:


  • Profits in line with expectations
  • Outlook: Challenging and volatile

Graphs and data:

  • Virgin Blue EBIT margin and net profit margins (%): FY06 to FY08
  • Virgin Blue operating costs growth break down (% change year-on-year): FY08
  • Virgin Blue financial highlights for 12 months ended 30-Jun-08
  • Virgin Blue passenger numbers and passenger load factors: FY06 to FY08
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