Virgin Blue has announced a net profit after tax of more than $135 million in the six months to December 31, an increase of 7.6 per cent, but their shares nosedived 10.5%, closing yesterday on the ASX 15.5% down at $1.35, the lowest price since the airline listed, with high fuel costs the greatest cause for concern.
Brett Godfrey, Virgin Blue CEO said that each $1US price movement meant a $4m increase in the cost of aviation fuel.
The trading result was also affected by a one-off expansion cost of $28.1 million and in addtion, Brett Godfrey said the result is a great success in an environment of record fuel costs, aggressive competition and further investment in what he described as “major initiatives”.
In a big day for announcements, Virgin Blue also announced a new interline arrangement with Thai, the firm purchase of four further Embraers and the convertion of another three options on Embraers taking firm orders up to 24 and fianlly announced that premium economy seats are now on sale across the network for travel from March 15, with fares from $389 one way between Sydney and Melbourne, $599 from Melbourne to Brisbane and $499 Adelaide to Sydney.
A Report by The Mole
