Shares in Australian carrier Virgin Blue slump after profit warning

0 Comments | AFP, January, 2005

SYDNEY (AFP) — Shares in Virgin Blue Holdings Ltd fell sharply after the discount Australian carrier warned its net profit for the year to March would be 10-15 percent below the previous year because of sluggish demand.

Virgin shares slumped 32 cents, or 16.6 percent, to 1.67 dollars (1.26 US) while its major shareholder, Patrick Corp Ltd, was also affected, with its shares falling 37 cents, or 5.7 percent, to 6.14 dollars in a rising market.

Patrick owns 46 percent stake of the carrier, launched in mid-2000 by Richard Branson's Virgin Group, which now holds a 25 percent stake.

Virgin managed in four years to capture a 33 percent share of Australia's domestic market, mostly at the expense of its big rival Qantas, but the national flag carrier has fought back...