Virgin Australia reports AU$356 million losses

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By TESTCustomwebLP TESTCustomwebLP August 29, 2014 19:59

Virgin Australia reports AU$356 million losses

Virgin Australia has reported losses of AU$356 million (US$333 million) in its last fiscal year, which is a three-fold increase over the previous year.

The results for the year through June 2014 followed an AU$98 million loss the previous year. The company blamed excess market capacity due to competition from its larger rival Qantas, weak consumer sentiment and the AU$52 million cost of Australia’s carbon tax.

“The 2014 Financial Year has seen one of the most difficult operating environments in the history of Australian aviation,” Virgin chief executive John Borghetti said in a statement.

Virgin announced on Friday that it had sold a 35% stake in its frequent flyer program to private equity firm Affinity Equity Partners for AU$960 million.

In July the Australian government repealed the carbon tax that had been levied on Australia’s largest corporate greenhouse gas emitters for two years.

CEO John Borghetti acknowledged that 2014 had been an “extremely tough year for the industry” but he added he was confident the Virgin Australia Group was in a strong position going forward.

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By TESTCustomwebLP TESTCustomwebLP August 29, 2014 19:59