Qld flooding could cost Virgin Blue millions

first_imgVirgin Blue advised this morning that the recent floods in Queensland along with a drop in consumer leisure spending could significantly impact their revenue to the tune of AUD40 million.In a statement to the Australian Stock Exchange, Virgin Blue claimed the “slowdown in consumer spending experienced across the discretionary retail and leisure sector, together with the recent floods in the Eastern States, could have [an]…impact on trading conditions over the coming months”.While not yet able to “accurately estimate” the cost of this impact, Virgin Blue admitted it could be up to AUD40 million.Coupled with last year’s Navitaire operating systems outage which “had an estimated pre-tax profit impact of AUD15-20 million” the carrier now expects to report AUD23-26 million Net Profit After Tax for the six months to 31 December 2010.Despite the figure being less than half of its prior corresponding period (AUD62.5 million), Virgin Blue has said their Game Change Program is on track “with benefits beginning to be realized in the 2012 financial year”. Virgin Blue is slated to provide a further update on 23 February 2011 when they release their half year results. Source = e-Travel Blackboard: G.Alast_img

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