Virgin Blue reports drop in first half profit

Airline Industry Information, Nov 17, 2004

AIRLINE INDUSTRY INFORMATION-(C)1997-2004 M2 COMMUNICATIONS LTD

Australian low-cost carrier Virgin Blue has announced that its first-half profit has dropped due to rising fuel costs and intense competition.

The airline's net profit fell 1.8% to AUD63m in the six months ending 30 September 2004 despite a 27.6% rise in sales to AUD786.9m. Virgin Blue said that fuel costs, competition and falling passenger yields were to blame for the decline and that its future outlook remains uncertain due to the volatile nature of the aviation market.

Virgin Blue carried 39% more passengers than over the same period in 2003 despite introducing a fuel surcharge in May 2004. The airline's CEO Brett Godfrey said that although the market environment was tough the carrier's cost base was still the lowest in Australia, reports The Associated Press.

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