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BRIEF-Virgin Australia Holdings Posts FY Group Underlying Loss Before Tax Of $71.2 Million

Published 28/08/2019, 10:05 am
© Reuters.  BRIEF-Virgin Australia Holdings Posts FY Group Underlying Loss Before Tax Of $71.2 Million
VAH
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Aug 28 (Reuters) - Virgin Australia Holdings Ltd VAH.AX :

* FY GROUP UNDERLYING LOSS BEFORE TAX $71.2 MILLION

* EXPECTS CAPACITY TO BE FURTHER REDUCED IN H1 FY20

* ANTICIPATES FURTHER FY20 FUEL AND FOREIGN EXCHANGE HEADWINDS OF APPROXIMATELY $100.0 MILLION WHEN COMPARED TO FY19

* REDUCTION OF 750 ROLES FROM WORKFORCE

* GROUP HAS HEDGED IN EXCESS OF 90 PER CENT OF ITS FORECAST FY20 FUEL CONSUMPTION AND HAS EXTENDED HEDGING INTO FY21

* TARGETING REDUCTION OF 750 CORPORATE AND HEAD OFFICE ROLES, REPRESENTING $75.0 MILLION IN COST SAVINGS BY FY20 END

* ALL CURRENT SUPPLIER AGREEMENTS WILL BE REVIEWED

* AGREEMENTS UNDER REVIEW INCLUDE WITH AIRCRAFT LESSORS, AIRPORTS AND OTHER SUPPLIERS; TARGETING COST SAVINGS OF AT LEAST $50 MILLION

* START OF FY20 HAS SEEN A CONTINUATION OF SOFTER CONDITIONS EXPERIENCED IN H2 FY19

* BENEFITS OF BUSINESS IMPROVEMENT INITIATIVES WILL BEGIN TO BE REALISED DURING FY20

* REMAINS COMMITTED TO LONG-TERM GROWTH OF VELOCITY BUSINESS AND INTENDS TO REMAIN MAJORITY SHAREHOLDER IN VELOCITY

* IN PROCESS OF REVIEW OF ITS FLEET, NETWORK AND CAPACITY

* INTENDS TO FURTHER REDUCE FLYING ACROSS SHORT-HAUL INTERNATIONAL AND DOMESTIC NETWORK; EXPECTS H1 FY20 CAPACITY GROWTH TO BE NEGATIVE

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