Virgin Australia lost $83.7 million after tax for the first half of fiscal 2014. The results come a day after Qantas unveiled its own larger first-half loss, blaming Virgin for much of the $252 million shortcoming.
Qantas and Virgin have been locked in a battle to bleed each other dry in the Australian domestic market, which in any case was facing some serious headwinds.
“Given the uncertain economic environment we are unable to provide guidance for the remainder of the 2014 Financial Year at this time,” chief executive John Borghetti said.
“The Australian aviation market continues to be impacted by the significant capacity growth which occurred during the 2013 Financial Year, compounded by weak economic conditions and the inability to recover the cost of the Carbon Tax.
“Consequently, the Australian domestic aviation industry has made a first half loss for the first time in 20 years.”
In its results statement Virgin made specific mention to its performance against its “main competitor”, pointing out it had outperformed on revenue growth, domestic and international yield and group revue load factor.
Here’s the key figures:
- Pre-tax Loss of $49.7 million
- Statutory Loss After Tax of $83.7 million, including impact of equity accounted investments
- Total cash position of $896.4 million, up from $580.5 million at 30 June 2013, unrestricted cash position of $665.4 million, up from $326.5 million at 30 June 2013 and positive operating cash flows for H1 FY14
Business Insider Emails & Alerts
Site highlights each day to your inbox.