Virgin Australia forecasts profit as overseas routes go low-priced Virgin Australia forecasts profit as overseas routes go low-priced

Virgin Australia forecasts profit as overseas routes go low-priced

Virgin Australia forecasts profit as overseas routes go low-priced

In Virgin’s domestic market, however, there were huge increases, with the airline raking in $111 million (before taxes) on flights within Australia in the past year – representing an increase on the 2013-2014 period of over $200 million.

“In our view, Sydney and Brisbane still does have a market for a premium carrier (to Bali)”.

Virgin’s full-year underlying pre-tax loss was A$49 million in the year ended of June 2015, an improvement of A$162.7 million on the previous financial year but will flow through to its owners’ accounts, including Air New Zealand.

Virgin Australia will axe flights to Bali and Phuket in an effort to turn around its loss-making worldwide business and get back to profitability for the first time in four years.

Mr Borghetti said the airline had begun a restructuring of the operations and had introduced business class on its trans-Tasman and Pacific Islands routes that already had shown positive results. However, the concern from investors more recently has been that Virgin risks ceding ground too quickly as it reshaped itself as an upmarket rival.

Virgin said as part of its plan to improve the performance of its global division it was launching its budget subsidiary Tigerair Australia in the short-haul worldwide market.

“We are the only carrier that’s competed against them and come out the side in a stronger position”.

“Today is a major milestone for Tigerair Australia, as we are thrilled to be spreading our wings and bringing lower airfares to more Australians,” Mr Sharp said.

While the decline in oil prices resulted in a benefit of about $60m for the group, the amount was partly offset by an additional $35m in operating costs due to a weaker Australian dollar, it said. Its 11% improvement over the past year is a substantial underperformance compared to Qantas (QAN).

The LATAM Group, which is a merger of Chile’s LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador with Brazil’s TAM, has adopted a new logo and consolidated all of its brands under the one name.

However, Virgin will increase flying to New Zealand with its alliance partner Air New Zealand.

Emirates has signed a codeshare agreement with Thailand-based Bangkok Airways, significantly expanding its network in Southeast Asia.

It will also add 14 more cities to Emirates’ global network, allowing it to connect passengers to new tourist destinations such as Koh Samui and Chiang Mai in Thailand, Siem Reap in Cambodia, and Yangon and Mandalay in Myanmar.


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