Virgin reveals $355m loss
Virgin reveals $355m loss

Virgin Australia has revealed a loss of $355.6 million, saying the past year had been one of the most difficult in the history of Australian aviation.

It blamed excess market capacity, weak consumer sentiment, continued economic uncertainty and the $51.6 million cost of the carbon tax for the result.

Virgin Australia Chief Executive Officer John Borghetti said that while the Virgin Australia Group performed well in attracting high-yielding passengers and containing cost growth over the full year, underlying revenue performance was impacted by the challenging operating conditions.

The airline also announced that it had sold a 35 per cent stake in its frequent flyer program to private equity firm Affinity Equity Partners for $960 million.

Mr Borghetti said the carrier had increased revenue from the corporate and government sectors, which now accounts for more than 25 per cent of domestic revenue..

Integrating the Skywest business had increased revenue from the charter segment, he said.

Total group revenue increased 7.1 per cent to $4.3 billion, including the additional revenue associated with the acquisition of Skywest.

The airline said that while revenue growth in the leisure and regional segments was subdued, this was partially offset by revenue growth in other sectors.

More to come

The West Australian

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