After first-quarter revenue jumped 9.7 percent, to at least 22 percent to reach about $100 million. Well above its 7.0 percent guidance, for the three months to September 30, 2018, the airline says revenue rose 9.7 per cent on the prior corresponding quarter. Virgin Australia said that a strong domestic performance and the current booking trends suggest there will be a rise of another 10 percent in the second-quarter revenue.
In the last full financial year, Virgin Australia swung to an underlying profit before tax of $109.6 million but reported a sixth consecutive statutory loss after impairments and tax adjustments of $681 million. There is further positive momentum in forward bookings, the group recorded its highest ever July revenue outcome in 2018.
Bali’s volcanic activity in late 2017 and its investment in Hong Kong services, Virgin Australia’s international business was buffeted by higher fuel prices. On Monday, compared to the $85 million it flagged in August its first-half guidance was inclusive of an estimated year-on-year fuel price increase of $88 million.
The Group anticipates that revenue will grow 10 percent compared to the prior corresponding quarter in the second quarter of the 2019 financial year, based on current booking trends, particularly in the domestic business. Group revenue in 1Q19 is expected to grow by at least 7%, based on current market conditions on the prior corresponding quarter.
For the first half of the 2019 financial year, the group will continue to monitor current trends and will update the market if required, given the second half of the financial year is traditionally a weaker period for the aviation industry.
Since VA Domestic segment reporting began in FY12 Core VA domestic business delivered significantly improved result and highest. Exceeding the previous target of $350m, in annualized net Free Cash Flow savings the company is on track to deliver $400m by Jun-19. The airline is delivering positive Free Cash Flow, sustainable earnings and balance sheet improvements. The company also reported $1.4bn cash balance which is an addition of $19.4m on FY17 period same time`.
Virgin Australia shares were up by 0.976% as at October 22, 2018 and was valued at 20.7 cents down about 60 per cent in the past three years. The stock has however, undergone a performance change of 10.81% over the past 12 months.
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