Virgin Blue laments "challenging" times
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Australian airline, Virgin Blue, has blamed a AU$101 million (US$65 million) second half 2008 loss on “exceptionally challenging” times, BBC News reported.
Despite having announced a range of cost-saving measures, including an 8% cut in capacity and the loss of 400 jobs, the airline is still struggling to cope with reduced travel demand and increasing domestic competition, the report said. Virgin Blue also confirmed that would probably report a loss in 2009.
“We still believe it’s going to be a challenge for us to break even this year, primarily due to the investment in V Australia,” the airline’s Chief Executive Officer, Brett Godfrey, was quoted saying.
A Virgin Blue statement however, said its results were still “a creditable performance amongst airlines globally, despite an extremely tough operating environment”.
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