25-Jan-2011 4:25 PM

Virgin Blue issues profit downgrade

Virgin Blue announced (25-Jan-2011) the recent flooding in Queensland and the slowdown in consumer spending across the leisure sector could have a significant impact on the airline's trading conditions over the next few months. The airline stated the impact on revenue could be "up to AUD40 million", and as a result the company's underlying net profit before tax for the six months ended 31-Dec-2010 will be in the AUD70-75 million range, rather than the AUD75.6 million achieved in the previous corresponding period. Virgin Blue stated that it expects to post a net profit after tax between AUD23 million to AUD26 million. [more]