Australia’s second largest airline Virgin Blue has said its annual pre-tax profits have fallen by 55%.
The airline, which is a quarter owner by Richard Branson, made A$ 97.7 million in the year to June, down from A$ 215.8 million in the previous 12 months.
The airline was the subject of speculation recently when its biggest shareholder Toll Holdings dumped its shares in the carrier, prompting talk that Branson may well step into the breech and stage a takeover.
Virgin Blue, which carries a third of the Australian domestic market, said it planned to introduce more luggage charges and higher seat prices in order to navigate the current stormy aviation landscape.
By Dinah Hatch
