Virgin Australia Holdings Limited (ASX: VAH) had come forward and made an announcement related to the results for H1 FY 2019 with the help of the release. As per the release, the company’s underlying profit before tax stood at $112.3 million which reflects the rise of 37.1%. The company stated that the results were supported by the strong performance witnessed with respect to Virgin Australia Domestic business which was aided by disciplined capacity management, stable market conditions, continued effective cost control under Better Business Program as well as robust passenger yield. The company’s performance reflects its progress with regards to improved earnings and strengthening of the financial foundation of the business so that sustainable profitability can be achieved.
The release issued stated that Virgin Australia has maintained its focus towards enhancing the experience of the guest via delivery of strong On-Time Performance, new onboard retail offering as well as other initiatives. Virgin Australia International had made an announcement related to new international lounge network, with 5 new lounges for the guests which are eligible and are travelling to and from the overseas destinations. With respect to Virgin Australia International or VAI, there have been improvements as the company has been focusing to position the business for the long-term growth, reflecting the improvement in the RASK, increased yield as well as a rise in the passenger numbers. There was a capacity growth by 14% in the international business as it positions itself to tap the opportunities with regards to the passenger growth in Greater China region, with the launch of Sydney-Hong Kong route in the month of July. The Virgin Australia International witnessed a rise of 15.2% in the revenues and stood at $666.1 million and was supported by new routes’ launch as well as increased yield.
The release issued by Virgin Australia Holdings Limited also contained the viewpoints of the top management. The CEO (or Chief Executive Officer) and Managing Director of Virgin Australia Group stated that they have built strong as well as competitive domestic operation under the brand of Virgin Australia Domestic which witnessed robust EBIT result as well as is continuing to attract customers and deliver two-thirds of the revenue. The company CEO and Managing Director also commented that improvement in the results was witnessed even though there were fuel headwinds which have been negatively impacting the global aviation.
We would now see how the stock of Virgin Australia Holdings Limited is performing today and how it had performed in the recent past. At the time of writing, the company’s stock is trading in green as the stock price is witnessing a rise of A$0.015 per share or 7.692% and is currently trading at A$0.210 per share. The market capitalization of Virgin Australia Holdings Limited stood at $1.65 billion. In the span of the previous three months, the stock had delivered the return of -4.88% while in the previous 1 month, the stock posted the return of 11.43%.
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