ZCZC
BCN-47
AUSTRALIA-AIRLINE-EARNING
Virgin Australia airline records 500 mln USD loss
SYDNEY, Aug. 29, 2018 (BSS/Xinhua) – Despite landing its highest ever
domestic earnings, Virgin Australia’s full-year statutory profit failed to
take off for the 6th consecutive year.
Announced to the Australian Securities Exchange on Wednesday, the airline
posted a loss of 681 million Australian dollars (500 million U.S. dollars).
According to the company’s statement, deferred tax accounting write-offs
to the tune of 451.9 million Australian dollars (331.83 million U.S.
dollars), along with the impairment of 120.8 million Australian dollars
(88.70 million U.S. dollars) of business assets were the main reasons for the
statutory losses.
A 45 million Australian dollars (33 million U.S. dollars) lift in the cost
of fuel also dragged on the bottom line.
“While these adjustments have impacted our statutory result for the year,
they are non-cash and have no impact on the fundamentals of the Group’s
underlying business,” Virgin Australia CEO John Borghetti said.
In total, full-year revenue actually shot up 7.4 percent to 5.42 billion
Australian dollars (3.98 billion U.S. dollars) to give the carrier an
underlying before tax profit of 109.6 million Australian dollars (80.48
million U.S. dollars).
“This outcome was driven by record earnings in our core domestic business,
which represents two thirds of our revenue base, and supported by significant
improvements in our cash and leverage results,” Borghetti said.
“Today’s financial results show that the business is in a good position to
achieve sustainable profitability going forward.”
BSS/XINHUA/HR/1310