Virgin Australia reports full year loss

SYDNEY: Budget airline Virgin Australia reported a full year net loss of A$67.8 million (US$70.7 million) on Thursday, blaming a series of natural disasters and a spike in fuel prices.

The result in the 12 months to June 30 for Australia's second-biggest carrier compares with a profit of Aus$21 million for the previous financial year.

The poor performance contrasts with key domestic rival Qantas, which more than doubled its profit to Aus$250 million in the same period.

Like Qantas, Virgin was hit hard by natural disasters, including floods and cyclones in northern Queensland state, the Christchurch earthquakes and Chile's volcanic ash cloud, as well as surging jet fuel costs.

Chief executive John Borghetti said he expected a better performance in the 2012 financial year.

"There are early indications of improving earnings in financial year 2012, with positive trading results in July and continued strengthening in the government and corporate markets," he said.

"We are confident we have the right strategy to manage our response to changes in future market conditions and to ensure a stable and successful future for Virgin Australia."

Virgin said net loss before tax -- the carrier's preferred measure of financial performance -- was Aus$66.6 million, within guidance of between Aus$30 million and Aus$80 million.

The airline group comprises long-haul V Australia, domestic arm Virgin Blue, and regional brands Pacific Blue and Polynesian Blue.

Copyright AFP (Agence France-Presse), 2011