Virgin Blue provided (23-Mar-2011) an update on its FY2011 outlook in light of recent increases in jet fuel and natural disasters in New Zealand and Australia. Virgin Blue, which had previously stated the second half would be "challenging", stated the increasing price of jet fuel will add an extra AUD50 million to its fuel bill for 2HY2011, with the Christchurch earthquake expected to have an AUD15 million impact and the Queensland floods and Cyclone Yasi to have a combined impact of AUD50 million. The airline warned that fuel surcharges and capacity reductions will only partially offset the impact of these events on FY2011 earnings. Virgin Blue expect to report a full-year pre-tax loss between AUD30 million-80 million. [more]
Virgin Blue: "We have witnessed an unprecendented number of significant events in an extraordinaryily short period of time, including natural disasters and a sharp spike in fuel prices. These events have severely impacted consumer confidence, resulting in a slower than usual recovery in tourism. These market conditions have further validates our Game Change Strategy which will see us less dependent on the leisure sector and reduce the volatility in our business. We re more confident than ever that our strategy is the right one." John Borghetti, CEO. Source: Company Statement, 23-Mar-2011.