Virgin Blue’s Annual Profits Climb a Staggering 93 Percent

Virgin Blue Holdings Limited today announced a net profit after tax of $174 million for the fiscal year ended 30 June, 2007, a 92.9 percent improvement from the previous year.

Earnings per share increased 92.5 percent from 10.7 to 20.6 cents as the airline maintained its traditional leisure market and attracted new business from the corporate sector and frequent fliers, contributing to a 16.3 percent improvement in revenue on 2.9 percent increase in production.

“This result is a credit to our outstanding and dedicated team. It is the strong performance we were aiming for, and progress at the rate planned under our New World Carrier strategy,” said Virgin Blue Chief Executive Brett Godfrey.

Total revenue increased by 16.3 percent to $2.17 billion, with yield increasing by 8.1 percent to 11.57 cents. Revenue Passenger Kilometers (RPK) were 17.6 billion up 7.3 percent from the prior year.

Load factor improved to 81.2 percent, up 3.3 points for the same period in 2006. Scheduled revenue per available seat kilometer (RASK) which measures ticket price and passenger load movements (quality of the revenue stream) increased to 9.39 cents per ASK, an improvement of 12.6 percent.

The group is to launch a fourth airline, V Australia, for long-haul flights. If it is given regulatory approval the airline will fly on routes between Australia and the US.