Air Transport World

Virgin Blue.(Asia/Pacific)(Brief Article)

Some of the gloss has come off the carrier, which listed on the Australian stock exchange last year. The emergence of Qantas's Jetstar and some performance problems in the early part of the year have analysts rethinking profit forecasts. Virgin Blue head Brett Godfrey warned that the domestic market remains "intensely competitive" and the introduction of Jetstar puts even greater pressure on yields.

But so far Virgin Blue's performance has been nothing short of spectacular. It maintained its high growth path with a 47% lift in net profit for the fiscal year ended March 31, ahead of its forecasts. Revenue was up nearly 50%, matching the cost increase. However, yields fell 7.5%, driven by the introduction of 10 new aircraft in August-October as well as increasing capacity on longer sectors. …

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