Virgin Australia Slides Into Debt

Virgin Australia Holdings has fallen into the red having reported a $98.1m loss after tax. The result includes a pre-tax trading loss of $9.4m for the recently acquired Skywest business. The airline also took a loss of $47.9m due to carbon tax. "Excluding Skywest and not adjusting for approximately $25m of waived ancillary fees, the underlying loss before tax for Virgin Australia is $72.8m," Virgin Australia's CEO, John Borghetti said. This year is Virgin Australia's third of its five-year consolidation programme. "Importantly, we have made significant progress in our plan to streamline the on-going costs of the business as it grows. In its first year, our business efficiency programme has exceeded targets, delivering sustainable efficiency gains of over $60m and is on track to deliver cumulative productivity gains of approximately $400m over the three years to 2015," Borghetti added. Virgin Australia finished the 2013 financial year with a total cash position of $580.5m and an unrestricted cash of $326.5 as of June 30, 2013.

TAGS: Asia Pacific
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