Virgin Has Started To Recover From A Massive Tumble Yesterday

Getty/Scott Barbour

Virgin Airways is trading up more than 7% after taking a massive dive yesterday, when it told the market it would be making less money this year than it did in 2012.

That revelation came after it had in February said it would make more money year-on-year, and it saw its share price fall more than 17% by the close yesterday.

Getty/Paul Kane

Virgin Airways had warned the market full-year profit-before-tax would be lower than its $82.5 million result in 2012.

Virgin is still predicting it will record a before-tax profit for the fourth quarter, as it pursues its strategy of maintaining yield improvement with strong cost controls.

“We are expecting there will be more moderate capacity growth in full-year 2014,” Deutsche Bank analyst Cameron McDonald told Business Insider this morning.

“That is consistent with comments both Virgin and Qantas are making.

“Our price target [for Virgin Airways] is 45 cents.”

At 10:47AM this morning it was trading up 8.5% to 41 cents, making back nearly half of yesterday’s loss.

Now read: Virgin Australia Has Issued A Surprise Profit Warning

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