Bellamy drops 11% on weak results

0
25

Virgin Australia will fire 750 employees and is reconsidering every route in its network as part of a plan by its new boss to cut costs and extract the airline from a financial attack. Weak demand and high fuel costs pushed Virgin to a loss of $ 315 million in the year ended June 30, the company said in an ASX statement Wednesday morning. This is an improvement on the $ 653 million loss in the previous year, but remains his third worst performance. The the airline has now registered seven consecutive years of losses adding up to $ 1.9 billion.

The company's stock register is dominated by major investors Singapore Airlines, Etihad Airways and the Chinese groups HNA and Nanshan, who each own about 20% of their shares. Richard Branson's Virgin Group owns another 10%. The latest shares were traded at 16 ¢.

The director general of Virgin, Paul Scurrah, who was called to replace the long-time leader John Borghetti in March, said that while he was "deeply aware" of the impact that the job cuts would have on staff, the result showed that the airline must improve its financial performance.

"I regret the need to reduce the size of our workforce so rapidly. However, today's financial results clearly and clearly tell us that we need to reduce costs," he said. "We have to make difficult but important decisions that are in the long-term interest of the group."

.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.