Virgin Blue announced this morning that it has increased its net profit forecast for 2004/05, expecting it to be in the order of $105 million, compared to its $159 million last year..
Virgin Blue’s last estimates announced in August, forecast that net profits would be within the range of $90 million to $100 million, lower than today’s announcement, which is interesting bearing in mind the impact of spiralling fuel prices. The oil price has risen more than 60 per cent in the past year.
In August, the budget airline said rising fuel prices and intense competition in the Australian domestic market were expected to impact profitability.
Patrick Corp, which has controlling stake in Virgin Blue, is also due to release a target statement today on the takeover bid by Toll Holdings
