Virgin Blue estimates up to A$80m pre-tax full year loss

This story is sourced from Pro
See more Pro news »

Virgin Blue has forecast that it will make a pre-tax loss of up to A$80 million ($80.7 million) for its fiscal year ending 30 June 2011, following rising fuel prices and several natural disasters.

It estimates to report a loss of between A$30 million and A$80 million, assuming no significant increase in fuel prices and no deterioration in the trading environment, says the airline.

Rising fuel prices have added A$50 million to the company's costs for the second half of its fiscal year in the last six weeks, says Virgin Blue.

"The Christchurch earthquake in late February is also expected to have a A$15 million impact. In addition, the Queensland floods and Cyclone Yasi had a combined impact of approximately A$50 million," it adds.