24-Feb-2010 2:11 PM

Virgin Blue revenue up 12.2%, profitable in 1HFY2010, sees continued pressue on yield for FY2010

Virgin Blue Holdings revenue up 12.2% - financial/traffic highlights for the six months ended 31-Dec-2009:

  • Revenue: USD1,366 million, +12.2% year-on-year;
    • Short-haul: USD1,135 million, +3.5%;
    • Long-haul: USD105.4 million, n/a;
  • Total operating cost: USD1,271 million, +4.5%;
    • Fuel: USD346.6 million, -4.0%;
    • Labour: USD273.6 million, +1.1%;
  • Operating profit^: USD95.0 million, compared to a profit of USD1 million in the previous corresponding period;
  • Profit (loss) before income tax: USD89.1 million, compared to a loss of USD129.5 million in the previous corresponding period;
    • Short-haul: USD97.3 million, +126%;
    • V Australia: (USD35.1 million), n/a;
  • Net profit: USD56.3 million, compared to a loss of USD91.4 million in the precious corresponding period;
  • Passenger numbers: 9.3 million, stable;
    • Short-haul: 9.1 million, -1.1%;
    • Long-haul: 200,000, n/a;
  • Load factor:
    • Short-haul: 80.1%, -0.1 ppt;
    • Long-haul: 81.1%, n/a;
  • Yield per RPK: USD 9.36 cents, -11.4%;
    • Short-haul: -4.3%;
  • Revenue per ASK: USD 8.32 cents, -10.1%;
  • Cost per ASK: USD 7.75 cents, -16.2%;
    • Short-haul: -6.8%;
  • Cost per ASK excl fuel: USD 5.63 cents, -4.5%;
  • FY2010 Forecast:
    • Underlying profit before tax>: USD72.1 million to USD99.1 million. [more]

*Based on the conversion rate at USD1 = AUD1.11
^Before tax expense, finance costs, ineffective cash flow hedges and non-designated derivatives
>Excluding one off – ineffective hedging (2009 and 2008) and V Australia start-ups (2008)

Virgin Blue: “We have a seasonal business and our traditionally busiest part of the year is the December first half – that and ongoing strong price competition will likely see pressure maintained on yield improvement for the remainder of this year,” Brett Godfrey, CEO. Source: Virgin Blue, 24-Feb-2010.