3-Feb-2017 12:47 PM
Virgin Australia 2QFY2017 trading affected by 'subdued industry trading conditions'
Virgin Australia issued (03-Feb-2017) its 2QFY2017 trading update. Key highlights include:
- A "subdued industry trading conditions" for the quarter in the domestic market, which had an impact on revenue;
- EBIT declined 37% year-on-year to AUD45.9 million (USD35.1 million);
- Total sectors flown by Virgin Australia Domestic declined 5% year-on-year;
- Virgin Australia group "continues to actively manage capacity" in response to this;
- As a result of the market conditions, the Virgin Australia Domestic business is expected to generate an underlying EBIT margin of 3-6% for FY2017.
- 2QFY2017 profit after tax was affected by restructuring charges related to the Group's three year 'Better Business' programme, which is expected to deliver "significant" cash flow savings by the end of FY2018. [more - original PR]