- Virigin Australia says its revenue is tracking higher than forecast.
- The September quarter was up 9.7%, ahead of guidance of 7%.
- First half underlying profit before tax is now forecast to rise 22% to at least $100 million.
Virgin Australia says first quarter revenue was ahead of forecast.
The airline says revenue for the three months to September was up 9.7%, ahead of guidance of 7%.
And Virgin says revenue will accelerate in the second quarter to 10% growth.
The company now expects underlying profit before tax for the second half to be up by 22% compared top the same six months last year to at least $100 million.
The first half results includes a fuel price increase of about $88 million.
In August, Virgin estimated the total fuel cost for the 2019 financial year to be $1.2 billion, up $213 million on 2018, partly driven by an increase in consumption of 5% to 6%, largely attributable to increased international flying.
Qantas also faces higher fuel prices. The fuel bill was up by almost $200 million in 2018 and it is expecting it to be $3.92 billion, up another $690 million, in 2019.
Virgin in August posted a full year statutory loss after tax of $653.3 million but underlying profit before tax was $109.6 million, an increase of $113.3 million and the highest in ten years. Revenue was up 7.4% to $5.42 billion.
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