Virgin expects $49m H1 loss

Airline says it is not aware of any reason for a recent drop in its share price.

Virgin Australia Holdings (VAH) has responded to a price query from the Australian Securities Exchange by saying it is not aware of any information that has not been announced to the market that could explain a recent fall in its share price.

In a statement, the airline said it has not given any earnings guidance for the six months to December 2013, but said it expects its loss before tax will be materially in line with the analysts' median forecast of $49 million.

Virgin shares closed at 31.5 cents yesterday after hitting an intra-day low of 28 cents, compared with a close of 33.5 cents the previous day.

Virgin Australia noted Virgin Atlantic's announcement that it intends to cut its Sydney to Hong Kong service, saying it had received feedback that this had caused some market confusion and mistaken assumptions that the two groups were the same entity.

The airline noted significant volatility in price declines in the Australian listed aviation sector over the last 48 hours and confirmed its compliance with the market listing rules.